Teck upsizes tender offer, accepts $1 billion of notes for purchase

New York, March 7 – Teck Resources Ltd. announced the early results of its tender offers for five series of notes and consent solicitations for two series of notes and said that it will accept $1 billion of notes for purchase.

The $1 billion size is an increase from the $650 million maximum set when the tenders were announced on Feb. 21.

Teck will buy notes as follows, listed in order of priority for acceptance:

• $194,358,000 of its $278,064,000 of 3% notes due 2019. All tendered notes were accepted. The purchase price is $1,025.00 per $1,000 principal amount;

• $519,833,000 of its $650 million of 8% notes due 2021. All tendered notes were accepted. The purchase price is $1,115.00 per $1,000 principal amount;

• $275,289,000 of its $500 million of 4½% notes due 2021. All tendered notes were accepted. The purchase price is $1,045.00 per $1,000 principal amount;

• $10.52 million of its $700 million of 4¾% notes due 2022. A pro ration factor of 3.9% will be applied to the $271,932,000 of notes that were tendered. The purchase price is $1,045.00 per $1,000 principal amount;

• None of its $600 million of 8½% notes due 2024. All $413,447,000 of the notes tendered will be returned to holders. The purchase price would have been $1,185.00 per $1,000 principal amount.

All the prices include a $30.00 early tender premium or consent payment that was only on offer to holders who participated by the early tender date of 5 p.m. ET on March 6.

The company will also pay accrued interest up to but excluding the settlement date of March 8.

Because the offers are already fully subscribed, no further notes will be accepted unless Teck further increases the cap.

Teck was also soliciting consents from holders of the 3% and 8% notes to amend their respective indentures to shorten the minimum period required to deliver a notice of optional redemption to three business days from 30 days. The company said it does not currently intend to redeem either series of the notes.

The requested consents have now been received and Teck plans to enter into a supplemental indenture.

The tender offers and consent solicitations will end at 12 a.m. ET on March 21.

The dealer managers and solicitation agents are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Mizuho Securities USA Inc. (866 271-7403 or 212 205-7736) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057). The depositary, tabulation agent and 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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