New Issue: First Quantum Minerals sells $1.6 billion 9 3/8% second-lien notes due 2029 at par

By Paul A. Harris

Portland, Ore., Feb. 22 – First Quantum Minerals Ltd. priced a $1.6 billion issue of five-year second-lien secured notes (B/B) at par to yield 9 3/8% on Thursday, according to a syndicate source.

The yield printed 12.5 basis points inside of the 9½% to 9¾% yield talk. Initial guidance was in the 10% area.

A special one-time call provision specifies that within 24 months of closing the notes sale, upon the successful restart of its Panamanian operations, the issuer may redeem 35% of the notes at par plus 75% of the coupon, plus accrued interest.

Goldman Sachs was the left bookrunner. Joint bookrunners were BNP Paribas, JPMorgan, ABSA, BMO, CIBC, Credit Agricole, ING, Natixis, Nedbank, Rand Merchant, RBC, SG, Standard Chartered and Standard Bank.

The Vancouver, B.C.-based mining and metals company, which is primarily focused on copper, plans to use the proceeds to repay certain debt, including all outstanding 2025 notes and 2026 notes, and for general corporate purposes.

Issuer:	First Quantum Minerals Ltd.
Amount:	$1.6 billion
Issue:	Second-lien secured notes
Maturity:	March 1, 2029
Left bookrunner:	Goldman Sachs
Joint bookrunners:	BNP Paribas, JPMorgan, ABSA, BMO, CIBC, Credit Agricole, ING, Natixis, Nedbank, Rand Merchant, RBC, SG, Standard Chartered and Standard Bank
Coupon:	9 3/8%
Price:	Par
Yield:	9 3/8%
Spread:	502 bps
Call protection:	Two years
Trade date:	Feb. 22
Settlement date:	Feb. 29
Ratings:	S&P: B
	Fitch: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	9½% to 9¾%

© 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.