By Cristal Cody
Tupelo, Miss., June 24 – Teck Resources Ltd. priced an upsized $550 million of 3.9% 10-year senior notes (Baa3/BBB-/BBB-) in a Rule 144A and Regulation S offering on Tuesday at a 325 basis points over Treasuries spread, according to a market source and a news release.
Initial guidance was in the Treasuries plus 375 bps area.
The deal was upsized from $500 million.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and RBC Capital Markets, LLC were the bookrunners.
Fixed income investor calls were held on Monday.
Teck Resources announced on Tuesday that it has begun cash tender offers for three series of notes totaling $538,695,000.
Proceeds from the note offering will be used to fund the tender offers and for general corporate purposes.
Teck is a mining company based in Vancouver, B.C.
| Issuer: | Teck Resources Ltd.
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| Amount: | $550 million
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| Description: | Senior notes
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| Maturity: | July 15, 2030
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| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and RBC Capital Markets, LLC
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| Coupon: | 3.9%
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| Spread: | Treasuries plus 325 bps
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| Trade date: | June 23
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| Settlement date: | June 30
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Fixed income investor calls
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| Price guidance: | Treasuries plus 375 bps area
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