By Paul Deckelman
New York, June 10 - Quadra FNX Mining Ltd. priced $500 million of eight-year senior notes (B1/BB-) at par to yield 7¾%, a high yield market source said.
Pricing came wide of talk for a 7½% yield.
J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners, while BMO Capital Markets Corp. acted as co-manager.
The notes - sold under Rule 144A and Regulation S for the life of the issue - are non-callable for the first four years, aside from a make-whole call at 50 basis points over Treasuries, and then follow a set call schedule.
The copper mining company, which has corporate offices in Vancouver and Toronto, announced the planned deal this past Monday and it was marketed to potential investors via a roadshow.
Quadra plans to use the new-deal proceeds, together with cash on hand, to finance the development of its Sierra Gorda project in Chile.
| Issuer: | Quadra FNX Mining Ltd.
|
| Amount: | $500 million
|
| Maturity: | June 15, 2019
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC
|
| Co-manager: | BMO Capital Markets Corp.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 530 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2015, then callable on or after June 15, 2015 at 103.875, on or after June 15, 2016 at 101.938 and finally at par on or after June 15, 2017
|
| Equity clawback: | Up to 35% at 107.75 until June 15, 2014
|
| Change-of-control put: | 101% plus accrued interest
|
| Trade date: | June 10
|
| Settlement date: | June 17
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A/Regulation S for life
|
| Price talk: | 7½% area yield
|
| Marketing: | Roadshow
|
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