By Cristal Cody
Prospect News, May 13 - Thompson Creek Metals Co. Inc. sold an upsized $350 million of 7 3/8% senior notes due June 1, 2018 at par to yield 487 basis points over Treasuries on Friday, according to the company and an informed bond source.
The notes (B3/B/) had been talked at 7½%. The private placement deal was upsized from $300 million.
JPMorgan Securities Inc. and Deutsche Bank AG were the bookrunners. Co-managers included BBVA, RBC Capital Markets Corp., UBS Investment Bank.
The company launched a roadshow on Monday for the Rule 144A and Regulation S offering.
The deal includes a make whole call at Treasuries plus 50 bps and a 35% three-year equity clawback at 107.375. The notes are non-callable for three years.
The notes will be guaranteed by subsidiaries Thompson Creek Metals Co. USA, Thompson Creek Mining Co., Thompson Creek Mining Ltd., Langeloth Metallurgical Co. LLC, Terrane Metals Corp., Berg General Partner Corp., Berg Metals LP, Cyprus Thompson Creek Mining Co., Long Creek Mining Co., Blue Pearl Mining Inc., Thompson Creek Services ULC and Mt. Emmons Moly Co.
The proceeds will be used to fund construction and development of the Mt. Milligan copper and gold mine in British Columbia and for general working capital.
The mining company is based in Vancouver, B.C., and Littleton, Colo.
| Issuer: | Thompson Creek Metals Co.
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| Guarantors: | Thompson Creek Metals Co. USA, Thompson Creek Mining Co., Thompson Creek Mining Ltd., Langeloth Metallurgical Co. LLC, Terrane Metals Corp., Berg General Partner Corp., Berg Metals LP, Cyprus Thompson Creek Mining Co., Long Creek Mining Co., Blue Pearl Mining Inc., Thompson Creek Services ULC and Mt. Emmons Moly Co.
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| Amount: | $350 million
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| Maturity: | June 1, 2018
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank AG
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| Co-managers: | BBVA, RBC Capital Markets Corp., UBS Investment Bank.
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| Coupon: | 7 3/8%
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| Price: | Par
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| Yield: | 7 3/8%
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| Spread: | 487 bps over Treasuries
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| Call feature: | 50 bps over Treasuries
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| Equity clawback: | 35% three-year at 107.375
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| Pricing date: | May 13
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| Settlement date: | May 20
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Distribution: | Rule 144A, Regulation S
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| Price talk: | 7½%
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