Teck Announces Pricing of US$550 Million of 10-Year Notes
June 23 2020 - 11:21PM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
announced today that it has priced an offering of senior unsecured
notes.
Teck will issue US$550 million principal amount of 10-year
senior unsecured notes, which will bear interest at the rate of
3.900% per annum.
The offering is expected to close on or about June 30, 2020,
subject to customary closing conditions. The net proceeds from the
offering of the notes are expected to be approximately US$542.2
million after the initial purchasers’ fees and estimated offering
expenses.
Teck intends to use the net proceeds from the offering, together
with cash on hand if necessary, to fund its previously announced
tender offers to purchase any and all of the combined
US$538,695,000 aggregate principal amount outstanding of its 4.500%
Notes due 2021, 4.75% Notes due 2022 and 3.750% Notes due 2023,
subject to the terms and conditions specified in the related offer
to purchase. In the event that the tender offers are not
consummated or not all of the net proceeds are used to fund the
tender offers, the remaining net proceeds will be used for general
corporate purposes, which may include reducing amounts outstanding
under Teck’s revolving line of credit.
The notes will be offered and sold to qualified institutional
buyers in the United States pursuant to Rule 144A and outside the
United States pursuant to Regulation S under the U.S. Securities
Act of 1933, as amended, (the “Securities Act”).
The notes have not been registered under the Securities Act or
any state securities laws and may not be offered or sold in the
United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws. This press
release shall not constitute an offer to sell or a solicitation of
an offer to buy any of the notes and shall not constitute an offer,
solicitation or sale of any notes in any jurisdiction where such
offering or sale would be unlawful. This press release shall not
constitute an offer to purchase the outstanding notes subject to
the tender offers. The tender offers are being made only pursuant
to the offer to purchase and related notice of guaranteed delivery.
This press release contains information about pending transactions,
and there can be no assurance that these transactions will be
completed.
Forward-Looking StatementsThis news release
contains certain forward-looking information and forward-looking
statements as defined in applicable securities laws (collectively
referred to as “forward-looking statements”). Forward-looking
statements in this news release include statements concerning the
expected net proceeds from the offering of the notes, the closing
of the offering, including the timing thereof, and the intended use
of proceeds and concerning the tender offers.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of Teck to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that may cause actual results to vary include, but are not limited
to, risks relating to the closing of the offering, conditions in
financial markets, investor response to the tender offers, and
other risk factors as detailed from time to time in Teck’s reports
filed with Canadian securities administrators and the U.S.
Securities and Exchange Commission.
Readers are cautioned against unduly relying on forward-looking
statements. Forward-looking statements are made as of the date of
the relevant document and, except as required by law, Teck
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements, whether as a result of new information
or future events or otherwise.
About TeckTeck is a diversified resource
company committed to responsible mining and mineral development
with major business units focused on copper, steelmaking coal, zinc
and energy. Headquartered in Vancouver, Canada, its shares are
listed on the Toronto Stock Exchange under the symbols TECK.A and
TECK.B and the New York Stock Exchange under the symbol TECK.
Teck Media Contact: Chris Stannell Public
Relations Manager 604.699.4368chris.stannell@teck.com
Teck Investor Contact:Fraser PhillipsSenior
Vice President, Investor Relations and Strategic
Analysis604.699.4621fraser.phillips@teck.com
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