VANCOUVER — Teck Resources has its senior secured notes at a total of US$4.225 billion. It plans to raise US$1.3 billion by issuing five-year notes bearing an interest rate of 9.75% annually. Another US$1.1 billion will be raised by the sale of seven-year notes with an annual interest rate of 10.25%, and a further US$1.1 billion will be raised through the sale of 10-year notes with an interest rate of 10.75%.
Teck intends to use the net proceeds from the private placement to repay borrowings under its existing bridge credit facility. On completion of the transaction, the outstanding balance under the bridge facility is expected to be US$603 million, which is due on Oct. 30, 2011.
The transaction was expected to close on May 8, 2009. See also www.Teck.com.
Comments