By Andrea Heisinger
New York, Aug. 3 - Teck Resources Ltd. sold $750 million of senior unsecured notes (Baa3/BBB/BBB-) in two tranches on Tuesday, a source who worked on the deal said.
The $300 million of 3.85% seven-year notes priced at 99.952 to yield 3.858% with a spread of Treasuries plus 160 basis points. The notes priced below guidance in the 175 bps area.
The seven-year notes have a make-whole call at Treasuries plus 25 bps.
A $450 million tranche of 6% 30-year bonds sold at 99.821 to yield 6.013% with a spread of 198 bps over Treasuries. This tranche also priced below talk in the 210 bps area.
The 30-year bonds have a make-whole call of Treasuries plus 30 bps.
Both tranches feature a change-of-control put of 101%. The notes are guaranteed by Teck Metals Ltd.
Bank of America Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities were the bookrunners.
Proceeds are being used to fund the repurchase of 9.75% notes due 2014 and 10.25% notes due 2016.
The natural resources and exploration company is based in Vancouver, B.C.
| Issuer: | Teck Resources Ltd.
|
| Guarantor: | Teck Metals Ltd.
|
| Issue: | Senior unsecured notes
|
| Amount: | $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
|
|
| Seven-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2017
|
| Coupon: | 3.85%
|
| Price: | 99.952
|
| Yield: | 3.858%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 175 bps area
|
|
|
| 30-year bonds
|
| Amount: | $450 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 6%
|
| Price: | 99.821
|
| Yield: | 6.013%
|
| Spread: | Treasuries plus 198 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 210 bps area
|
© 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.
