First Quantum Minerals Announces Pricing and Upsizing of Senior Notes Offering
(In United States dollars)
TORONTO, Sept. 17, 2020 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX:FM) today announced that it has successfully completed the pricing of its offering (the “Offering”) of $1,500 million aggregate principal amount of 6.875% Senior Notes due 2027 (the “Notes”). The original offering amount of the Notes of $1,000 million has been increased to $1,500 million. The issue price of the Notes is 100.000%.
Interest on the Notes will accrue from the issue date at a rate of 6.875% per annum and will be payable semi-annually. Settlement is expected to take place on or about October 1, 2020, subject to customary conditions precedent for similar transactions. The Notes will be senior unsecured obligations of the Company and will be guaranteed by certain of the Company's subsidiaries.
The Company intends to apply the gross proceeds from the sale of the Notes towards (i) the repayment of $650 million principal amount under the Company’s existing revolving credit facility and (ii) the redemption in full of the Company’s outstanding Senior Notes due 2022. Fees and expenses associated with the Offering are expected to be paid using cash on balance sheet.
The information in this announcement does not constitute an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered or are exempt from the registration of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). 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 the Notes will not be offered or sold within the U.S. or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S of the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and the applicable laws of other jurisdictions. The Company does not intend to conduct a public offering in the United States or any other jurisdiction. It may be unlawful to distribute this announcement in certain jurisdictions.