Teck raises tender offer for four series of notes to $1.25 billion

New York, June 7 – Teck Resources Ltd. increased the size of its tender offer for four series of notes to $1.25 billion principal amount from the originally announced $1 billion.

The company will accept all the notes tendered from the series with the three highest levels of priority and 59.6% of the series with priority level four, according to a news release.

By the early tender deadline of 5 p.m. ET on June 6, holders had tendered notes as follows, listed in order of acceptance priority, highest first:

• $266,274,000 of the company’s $300 million of 3.15% notes due 2017. All tendered notes will be accepted for purchase at a price of $1,013.75 per $1,000 principal amount;

• $284,264,000 of the company’s $300 million of 3.85% notes due 2017. All tendered notes will be accepted for purchase at a price of $1,032.50 per $1,000 principal amount;

• $477,526,000 of the company’s $500 million of 2.5% notes due 2018. All tendered notes will be accepted for purchase at a price of $1,012.50 per $1,000 principal amount; and

• $372,189,000 of the company’s $500 million of 3% notes due 2019. The series was subject to a cap of $300 million. Teck will purchase $221,936,000 of the tendered notes using a pro ration factor of 59.6%. The purchase price is $977.50 per $1,000 principal amount.

The purchase prices include an early tender premium of $30.00 per $1,000 principal amount.

Teck will also pay accrued interest up to but excluding the settlement date, which was expected to be June 7.

Because the offer is already oversubscribed, the company will not accept any notes tendered after the early tender date.

The tender offer had been set to expire at midnight ET on June 20.

Teck announced the tender offer on May 23, saying it would buy up to $1 billion of the four series of notes.

The tender offers were conditioned on financing. Teck priced an upsized $1.25 billion of notes in two tranches on May 26.

The dealer managers are Goldman Sachs & Co. (800 828-3182 or 212 902-6941), BofA Merrill Lynch (888 292-0070 or 980 388-3646) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-8553). The depositary and the information agent is Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

Based in Vancouver, B.C., Teck is a resource company focused on copper, steelmaking coal, zinc and energy.

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