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Teck Resources ups payout for 10¾% notes tendered after early deadline
By Angela McDaniels
Tacoma, Wash., Sept. 22 - Teck Resources Ltd. amended the tender offer for its 10¾% senior secured notes due 2019 so that all holders who tender will receive the $30.00 early tender payment, according to a company news release.
Previously, only holders who tendered by 5 p.m. ET on Sept. 21, the early tender date, would have received the early tender payment.
The company is offering to purchase up to $1 billion, or 54.05%, of the $1.85 billion outstanding principal amount of notes.
The purchase price is $1,257.50 for each $1,000 principal amount of notes, including the $30.00 early tender payment. The company will also pay accrued interest up to but excluding the settlement date.
Holders had tendered roughly $542 million principal amount, or 29%, of the notes as of the early tender date. Teck will promptly accept for early payment a portion of these notes.
The company said that because it is offering to purchase 54.05% of the outstanding notes, it is limited to accepting for early purchase 54.05%, or $293 million principal amount, of the notes tendered by the early tender date.
The early settlement of these notes is subject to the closing of Teck's offering of $500 million of 4½% notes due 2021 and $200 million of 6% notes due 2040. This offering closed on Sept. 22.
The tender offer will expire at midnight ET on Oct. 5.
The offer began Sept. 8. There is no minimum tender condition.
The dealer managers for the tender offer are J.P. Morgan Securities LLC (866 834-4666), Banc of America Securities LLC (888 292-0070), Citigroup Global Markets Inc. (800 558-3745) and Goldman Sachs & Co. The information agent is Global Bondholder Services Corp. (866 389-1500).
Teck is a Vancouver, B.C.-based mining company with major business units focused on copper, steelmaking coal, zinc and energy.
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