VANCOUVER – Teck Resources
will issue US$1.25 billion of senior unsecured notes. The offering consists of US$650 million in five-year notes and US$600 million in eight-year notes.
The five-year notes will carry a rate of 8.0% per year, callable on or after June, 2018. The eight-year notes will have a rate of 8.5% per year, callable on or after June 1, 2019.
The notes will be guaranteed by Teck’s wholly owned subsidiaries – Teck Metals, Teck Coal Partnership, Teck Financial Corp., TCL U.S. Holdings, and Teck Alaska. The offering is due to close on or about June 7, 2015, subject to customary conditions. Teck plans to use the bulk of the net proceeds (US$1.23 billion) to repurchase older notes coming due in 2017, ‘18 and ’19.
Teck maintains its website at www.Teck.com