Thompson Creek buys back $34.2 million of 9¾% notes in second quarter

By Wendy Van Sickle

Columbus, Ohio, July 13 – Thompson Creek Metals Co. Inc. bought back $34.2 million of its 9¾% senior notes due Dec. 1, 2017 during the second quarter of 2015, according to news release from the company.

The notes were repurchased at an average price of 107.

Total cash used was about $37.8 million, including $1.2 million in accrued interest. Future interest savings through December 2017 will be about $8.2 million, the company said.

“During the second quarter we saw continual operational improvements at Mount Milligan, which we believe will continue throughout the remainder of the year. Based on this assessment and our strong cash position, we were able to deploy capital for additional bond repurchases as part of our plan to reduce our debt,” company president and chief executive officer Jacques Perron said.

Since completion of the Mount Milligan Mine, the company said it has repaid and retired 12% of its debt, or approximately $121 million, including the net repayments of its capital lease obligations.

The company said its target is to reduce its debt to approximately 3 times EBITDA.

The company’s June 30 cash and cash equivalents balance was approximately $211 million, compared to $238 million on March 31. Excluding the effect of the note repurchases, the company said its cash balance increased by about $10 million during the second quarter.

Thompson Creek is a mining company based in Littleton, Colo.

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