Mr. Clive Newall reports
FIRST QUANTUM MINERALS ANNOUNCES PRICING OF SENIOR NOTES OFFERING
First Quantum Minerals Ltd. has successfully completed the pricing of its offering of senior notes due 2024 and 2026. The original offering amount of $1.5-billion has been increased to $1.85-billion, comprising $850-million of senior notes due 2024 and $1-billion of senior notes due 2026 (in U.S. dollars, except where noted otherwise).
Interest on the 2024 notes will accrue at a rate of 6.5 per cent per annum, and interest on the 2026 notes will accrue at a rate of 6.875 per cent per annum. Settlement is expected to take place on or about Feb. 27, 2018, subject to customary conditions precedent for similar transactions.
The notes will be senior obligations of the company and will be guaranteed by certain of the company's subsidiaries. Interest will be payable semi-annually.
The company intends to use the proceeds from the sale of the notes (i) to prepay all of the outstanding indebtedness under the company's term loan facility entered into on Oct. 19, 2017, (ii) to repay amounts drawn and outstanding under the company's revolving credit facility entered into on Oct. 19, 2017, to provide liquidity sufficient to finance the company's share of remaining capital expenditures relating to the Cobre Panama project, (iii) for general corporate purposes, and (iv) to pay fees associated with the offering.
As a result of this offering, the company is no longer pursuing the $2.25-billion project finance facility as a source of financing for the Cobre Panama project.
We seek Safe Harbor.
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