Teck Announces New Credit Facility, Closing of Notes Issue and Tender Offer Results
June 30 2020 - 09:52AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) announced today the signing of a new US$1 billion
unsecured two-year revolving credit facility, the closing of its
previously announced US$550 million offering of ten-year notes and
the results of the previously announced cash tender offers for its
US$539 million of outstanding notes maturing in 2021, 2022 and
2023.
“Teck’s already strong liquidity will be further augmented with
these transactions,” said Don Lindsay, President and CEO. “Together
with our US$4 billion revolving credit facility that matures in Q4
2024 and our US$2.5 billion project financing facility for QB2,
this new US$1 billion facility and the extension of near term debt
maturities will give Teck significant liquidity as we complete QB2
and the Neptune expansion project.”
The terms of the new US$1 billion revolving credit facility are
substantially the same as the terms of Teck’s existing US$4 billion
revolving credit facility.
Net proceeds from the notes offering are being used to purchase
today US$255.1 million aggregate principal amount of 2021, 2022 and
2023 notes pursuant to the previously announced tender offer for
those notes. The balance of the net proceeds from offering will be
applied to reduce amounts outstanding on Teck’s US$4 billion
revolving credit facility. Results of the tender offer are
described below.
Tender Offer ResultsThe previously announced
cash tender offers (each, an “Offer” and collectively, the
“Offers”) for any and all of Teck’s outstanding 4.500% Notes due
2021 (the “2021 Notes”), 4.75% Notes due 2022 (the “2022 Notes”)
and 3.750% Notes due 2023 (the “2023 Notes” and together with the
2021 Notes and the 2022 Notes, the “Notes”) expired at 5:00 p.m.
New York City time, on June 29, 2020 (the “Expiration Time”). The
Offers were made pursuant to Teck’s Offer to Purchase, dated June
23, 2020 (the “Offer to Purchase”), and the related Notice of
Guaranteed Delivery (the “Notice of Guaranteed Delivery”). The
Offer to Purchase and the Notice of Guaranteed Delivery are
referred to herein collectively as the “Offer Documents.”
Teck has been advised that the following aggregate principal
amounts of Notes were validly tendered and not validly withdrawn as
of the Expiration Time:
- US$103,995,000 aggregate principal amount of 2021 Notes,
representing 88.96% of the 2021 Notes;
- US$52,219,000 aggregate principal amount of 2022 Notes,
representing 25.87% of the 2022 Notes; and
- US$98,905,000 aggregate principal amount of 2023 Notes,
representing 44.97% of the 2023 Notes.
These amounts do not include US$56,000 aggregate principal
amount of 2021 Notes, tendered in accordance with guaranteed
delivery procedures, which must be delivered by no later than 5:00
p.m., New York City time, on July 1, as set forth in the Offer
Documents.
Teck has accepted for payment all Notes validly tendered and not
validly withdrawn prior to the Expiration Time. In accordance with
the terms of the Offer Documents, Teck has paid or will pay all
holders whose Notes are accepted for purchase in the Offers the
relevant Tender Offer Consideration as set forth in the Offer
Documents on the Payment Date (as defined below) or the Guaranteed
Delivery Payment Date (as defined below), as applicable. In
addition, holders whose Notes are accepted for purchase in the
Offers will receive accrued and unpaid interest from the last
interest payment date to, but not including, the Payment Date.
Payment for any Notes validly tendered and not validly withdrawn at
or before the Expiration Time occurred on June 30, 2020 (the
“Payment Date”), provided that payment for Notes delivered under
the guaranteed delivery procedures is expected to occur on July 2,
2020 (the “Guaranteed Delivery Payment Date). Notes purchased
pursuant to the Offers will be cancelled.
Teck also announced today that it has issued a notice of
redemption to redeem, on July 30, 2020, all of the 2021 Notes not
purchased in the Offers.
Teck has retained Global Bondholder Services Corporation, as the
depositary and information agent for the Offers. Teck has retained
J.P. Morgan Securities LLC as the dealer manager for the
Offers.
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 include the expected enhancement to Teck’s liquidity
from the various initiatives referred to.
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, unavailability of Teck’s credit
facilities or unexpected demands on Teck’s liquidity.
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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