TORONTO (miningweekly.com) – Canadian diversified miner Teck Resources has announced the pricing of an offering of $1.25-billion in senior unsecured notes, comprising $650-million in five-year notes and $600-million in eight-year notes.
The Vancouver, British Columbia-headquartered company advised that the notes would be guaranteed on a senior unsecured basis by its subsidiaries Teck Metals, Teck Coal Partnership, Teck Financial, TCL US Holdings and Teck Alaska Incorporated.
The five-year notes would have a coupon of 8% and would be callable from June 1, 2018. The eight-year notes would bear interest at a rate of 8.5% a year and would be callable from June 1, 2019.
The offering was expected to close on or about June 7, subject to customary closing conditions, Teck advised. The company expected to receive total net proceeds of about $1.23-billion from the offering, after deducting underwriting fees and estimated offering expenses.
Teck planned to use the net proceeds from the offering to fund its tender offers to buy for cash up to $1-billion principal amount of its 3.15% notes due 2017, 3.85% notes due 2017, 2.5% notes due 2018 and 3% notes due 2019.
After completing the tender offers, Teck would use any remaining net proceeds for general corporate purposes, which might include debt repurchases, including under another tender offer, redemptions or open-market purchases of the same or different series of notes.