First Quantum Minerals reveals plan to buy back its outstanding 9.375% Senior Secured Second Lien Notes maturing in 2029, in a move that could potentially cost up to $250 million in cash.
First Quantum Minerals Launches Cash Tender Offer for High-Coupon Notes
First Quantum Minerals Ltd. has announced a cash tender offer to purchase up to $250 million aggregate principal amount of its outstanding 9.375% Senior Secured Second Lien Notes due 2029. The tender offer, which is called the Tender Offer, was launched on August 6, 2025, as part of the company's debt refinancing strategy [1][4][5].
The Tender Offer is set to expire at 5:00 pm New York City time on August 12, 2025, though this date may be extended [2]. The consideration paid per $1,000 principal amount of Notes tendered is calculated based on a fixed spread over the yield of a specified U.S. Treasury reference security (the "Reference Security") quoted on Bloomberg. This spread and yield determine the "Notes Consideration" [2].
Holders who tender their notes before August 19, 2025, will receive $1,066.25 per $1,000 principal amount of Notes, while those who tender after August 19, but before the expiration date, will receive $1,016.25 per $1,000 principal amount of Notes [1]. Early settlement for notes validly tendered and accepted prior to the Early Tender Time is expected on the second business day following that time, with final settlement for other valid tenders occurring on the second business day after the Expiration Time, subject to conditions and possible termination or extension of the Tender Offer [5].
The tender offer is subject to certain conditions, including the successful pricing and closing of a concurrent offering of senior notes due 2034. The Company intends to use a portion of the proceeds from the concurrent offering towards the Offer to Purchase [1].
First Quantum Minerals emphasises that none of the Company, the Dealer Managers, or the Tender and Information agent makes any recommendation as to whether or not Holders should tender their Notes or deliver consents or how much they should tender in connection with the Tender Offer [3]. The Dealer managers for the Tender Offer are J.P. Morgan Securities, Goldman Sachs, BMO Capital Markets, and Société Générale. The tender and information agent is Kroll Issuer Services Limited, which can provide detailed offer documents [5].
Questions regarding the Tender Offer should be directed to the Dealer Managers, and copies of documents relating to the Tender Offer may be obtained from Kroll Issuer Services Limited [5]. The Tender Offer is being managed by J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BMO Capital Markets Corp., and Société Générale [5].
It's important to note that the New 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, or for the account or benefit of, U.S. Persons [2]. The press release contains forward-looking statements and information, including the anticipated cash expenditure to consummate the Tender Offer, the consummation, timing, settlement, size, and terms of the Tender Offer, and the ability to achieve the Company's goals [2].
Factors affecting the outcome include the maximum amount the company will purchase, which is limited to $250 million principal, so tenders exceeding this amount may be prorated [1][5]. The tender offer is part of a broader debt management and refinancing strategy to replace high-cost 9.375% 2029 notes with longer-term debt at lower interest rates, easing near-term liquidity pressures [3]. Credit ratings of First Quantum are at "B" with a negative outlook due to high leverage and operational challenges such as suspended production at the Cobre Panama mine, which influences investor appetite and pricing for these notes [3]. Market interest rates remain relatively high, and the tender offer pricing is sensitive to Treasury yields and market conditions at the "Price Determination Date" specified in the offer [2][3].
The contact information for Investor Relations and Media Relations is provided: - Investor Relations: Bonita To, Director, Investor Relations, (416) 361-6400, Toll-free: 1 (888) 688-6577, Email: [email protected] - Media Relations: James Devas, Manager, Corporate Affairs, 44 207 291 6630, Email: [email protected]
First Quantum Minerals undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law [2]. Readers should not place undue reliance on forward-looking statements or information as there may be other factors that cause actual results, performances, achievements, or events to be materially different from those disclosed in the forward-looking statements or information [2].
Investors in the business sector may be interested to know that First Quantum Minerals has launched a tender offer for high-coupon notes, which is part of the company's strategy to refinance its debt in the finance industry by replacing high-cost notes with lower interest rate notes. The tender offer is sensitive to market interest rates and Treasury yields, and investors should consider these factors when deciding whether to invest or tender their notes. Further information about the tender offer, including contact details for Investor Relations and Media Relations, can be found in the press release.
