First Quantum Minerals concludes $1 billion offering of senior bonds
First Quantum Minerals Raises $1 Billion for Debt Refinancing
First Quantum Minerals Ltd, a leading mining company, has successfully issued $1 billion in 7.25% senior unsecured notes due 2034. The offering, which was initially planned for $750 million, marks a significant step in the company's strategic debt refinancing initiative.
The proceeds from the sale of these notes will primarily be used to fund a tender offer to repurchase $750 million of its existing 6.875% senior notes due 2027, refinance part of its higher-cost 9.375% senior secured second lien notes due 2029, and cover related fees and expenses.
This debt refinancing strategy is aimed at extending debt maturities, reducing short-term leverage risk, and stabilizing the company's credit metrics amid volatile copper prices and operational challenges, such as the suspended Cobre Panama mine. Despite a small interest cost reduction (38 basis points), credit agencies maintain a 'B' rating with a negative outlook due to elevated leverage and declining EBITDA.
In a bid to improve its liquidity, First Quantum Minerals has shelved plans to sell minority stakes in its Zambian copper mines. The company is also negotiating with the Panamanian government on possibly restarting the Cobre Panama mine, which had been a significant financial burden while shut.
It is important to note that these securities are not intended for retail investors in the European Economic Area (EEA). The distribution of this announcement into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions.
In the UK, this announcement and any offer of the securities referred to herein in the UK will be made pursuant to an exemption under the Prospectus Regulation from the requirement to publish a prospectus for offers of the securities referred to herein.
All forward-looking statements and information contained herein are expressly qualified by this cautionary statement. Neither the content of the company's website nor any website accessible by hyperlinks on the company's website is incorporated in, or forms part of, this announcement.
The notes are senior unsecured obligations of First Quantum Minerals Ltd. and are guaranteed by certain subsidiaries. No key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EU Withdrawal Act 2018 (as amended, the "UK PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the UK has been prepared. Offering or selling the Notes or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPS Regulation.
In member states of the EEA, the offering will be made pursuant to an exemption under the Prospectus Regulation. No key information document required by Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the securities or otherwise making them available to retail investors in the EEA has been prepared.
The tender offers include a tender for its existing 6.875% senior notes due 2027 and a tender for a portion of its existing 9.375% senior secured second lien notes due 2029. The notes will not be registered under the U.S. Securities Act, or the securities laws of any state of the U.S. or other jurisdictions and will not be offered or sold within the U.S. or to U.S. Persons, except pursuant to an exemption or in a transaction not subject to the registration requirements.
Interest on the notes will be payable semi-annually. The securities are not intended for retail investors in the United Kingdom ("UK"). This announcement is an advertisement and is not a prospectus for the purposes of the Prospectus Regulation or the UK Prospectus Regulation.
For more information, please visit the company's website at www.first-quantum.com. The Notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with relevant persons. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this announcement or the merits of the securities referred to herein, and any representation to the contrary is an offence.
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