S&P: Thompson Creek on positive watch

Standard & Poor's said it placed its ratings, including its B- long-term corporate credit rating, on Thompson Creek Metals Co. on CreditWatch with positive implications.

The agency said that the CreditWatch listing follows Thompson Creek's announcement that it will issue $215 million in new common shares and use the proceeds to repay the balance of its existing first-lien term loan.

The equity issue will supplement $47.5 million of cash on hand at first-quarter 2008, against $219.4 million outstanding on the first-lien term loan, S&P noted, adding that strong molybdenum prices and improving ore grades resulted in last 12 month operating margins of more than 30% and $88 million in free cash flow generation.

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