Teck begins tender offers for up to $1 billion of four series of notes

By Angela McDaniels

Tacoma, Wash., May 23 – Teck Resources Ltd. began tender offers to purchase up to $1 billion aggregate principal amount of its $300 million 3.15% notes due 2017, $300 million 3.85% notes due 2017, $500 million 2.5% notes due 2018 and $500 million 3% notes due 2019, according to a company news release.

The notes are listed in order of acceptance priority level.

The company said it will purchase no more than $300 million principal amount of the 3% notes.

For each $1,000 principal amount of notes, the company is offering a total consideration of $1,013.75 for the 3.15% notes, $1,032.50 for the 3.85% notes, $1,012.50 for the 2.5% notes and $977.50 for the 3% notes.

In each case, the total consideration includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 6, the early tender date.

The company will also pay accrued interest up to but excluding the applicable settlement date.

The tender offers will expire at midnight ET at the end of the day on June 20.

Teck reserves the right, but is under no obligation, to accept for purchase any notes tendered by the early tender date at any point following the early tender date and before the expiration date. The early settlement date is currently expected to occur on June 7.

Subject to the $1 billion aggregate maximum tender amount, the $300 million tender cap for the 3% notes and proration, the notes accepted on any settlement date will be accepted in accordance with their acceptance priority levels. All notes tendered by the early tender date will be accepted for purchase in priority to other notes tendered after the early tender date, even if the notes tendered after the early tender date have a higher acceptance priority level than notes tendered prior to the early tender date.

The tender offers are conditioned on financing. They are not conditioned on any minimum amount of notes being tendered.

The dealer managers are Goldman Sachs & Co. (800 828-3182 or 212 902-6941), BofA Merrill Lynch (888 292-0070 or 980 388-3646) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-8553). The depositary and the information agent is Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

Based in Vancouver, B.C., Teck is a resource company focused on copper, steelmaking coal, zinc and energy.

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