Teck to redeem all $600 million of outstanding 8½% notes due June 2024

Chicago, May 30 – Teck Resources Ltd. announced that it will redeem all $600 million principal amount outstanding of its 8½% notes due June 2024, according to a company notice.

The notes will be redeemed on June 29.

Following the redemption, the company will have no significant note maturities due until 2035. Notes outstanding will have been reduced to $3.2 billion from $7.2 billion.

Teck expects to realize a net pre-tax interest expense reduction of approximately $36 million annually, and to record a net after-tax accounting charge of approximately $106 million in connection with the redemption, of which $68 million is non-cash.

Earlier in the year Teck regained its investment-grade credit rating from all four rating agencies.

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

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