Teck begins tender offer for up to $600 million 9.75%, 10.25% notes

By Susanna Moon

Chicago, Aug. 3 - Teck Resources Ltd. said it began an offer to purchase for cash up to $600 million principal amount of its $1,315,000,000 9.75% senior secured notes due 2014 and $1.06 billion 10.25% senior secured notes due 2016.

The company will pay $1,242.50 for each $1,000 principal amount of 9.75% notes and $1,197.50 for each 10.25% note, including a $30.00 premium for notes tendered by 5 p.m. ET on Aug. 16, the early tender date.

The notes are listed in order of acceptance priority level. There is a sublimit of $300 million principal amount for 10.25% notes purchased in the offer.

The tender offer will end at midnight ET on Aug. 30.

Notes may be withdrawn until 5 p.m. ET on Aug. 16.

Teck said it also began an offering of up to $750 million of senior unsecured notes due 2017 and 2040.

Banc of America Securities LLC (888 292-0070), Citigroup Global Markets Inc. (800 558-3745, attn: liability management group) and J.P. Morgan Securities Inc. (866 834-4666, attn: liability management group) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 389-1500, attn: corporate actions) is the depositary and information agent.

Teck is a Vancouver, B.C.-based diversified resource company with business units focused on copper, metallurgical coal, zinc, gold and energy.

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