Teck Cominco expected to offer $500 million notes during May 4 week

By Paul A. Harris

St. Louis, May 1 - Teck Cominco Ltd., a Canadian metals and mining firm, is expected to come to the high-yield new issue market with a $500 million offering of notes during the week ahead, market sources said Friday.

No further details were available.

On April 22 Moody's Investors Service said that Teck Cominco's commitment letter covering its bridge extension and deferral of loan payments would have no impact on its Ba3 corporate family rating or negative outlook, although the extension and deferral represent positive developments from a ratings perspective as they substantially reduce Teck's near-term refinancing risk, Moody's said.

The last rating action on Teck Cominco was a downgrade of the company's corporate family rating to Ba3 from Ba1 on Feb. 6, the agency noted.

The Vancouver, B.C.-based firm is engaged in exploration, development and production of natural resources. Its principal products are copper, metallurgical coal, zinc and gold.

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