By Andrea Heisinger
New York, June 29 - Teck Resources Ltd. sold $2 billion of senior notes (Baa2/BBB/BBB) in three tranches late on Wednesday, an informed source said.
A $300 million tranche of 3.15% notes due 2017 priced at 99.964 to yield 3.157%, or Treasuries plus 150 basis points. The notes priced at the low end of guidance, which was in the 155 bps area.
The tranche has a make-whole call at Treasuries plus 25 bps.
A $700 million tranche of 4.75% notes due 2022 sold at 99.843 to yield 4.769% with a spread of 165 bps over Treasuries. The tranche was priced at the tight end of talk in the 170 bps area.
These notes also have a make-whole call at 25 bps over Treasuries.
The final part was $1 billion of 6.25% 30-year bonds priced at 99.715 to yield 6.271%, or Treasuries plus 190 bps. This tranche was priced at the tight end of guidance in the 195 bps area.
The bonds have a make-whole call of Treasuries plus 30 bps.
All three tranches include a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
Goldman Sachs & Co. and RBC Capital Markets LLC were assisting on the trade.
Proceeds will be used for general corporate purposes, including anticipated capital spending for project development in coal, copper and energy businesses, and for debt repayment.
The securities are guaranteed by Teck Metals Ltd.
The diversified resource company for mining and mineral development is based in Vancouver, B.C.
| Issuer: | Teck Resources Ltd.
|
| Guarantor: | Teck Metals Ltd.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Goldman Sachs & Co., RBC Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | June 29
|
| Settlement date: | July 5
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Notes due 2017
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2017
|
| Coupon: | 3.15%
|
| Price: | 99.964
|
| Yield: | 3.157%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 155 bps area
|
|
|
| Notes due 2022
|
| Amount: | $700 million
|
| Maturity: | Jan. 15, 2022
|
| Coupon: | 4.75%
|
| Price: | 99.843
|
| Yield: | 4.769%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 170 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2041
|
| Coupon: | 6.25%
|
| Price: | 99.715
|
| Yield: | 6.271%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 195 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
