By Paul A. Harris
Portland, Ore., Nov. 16 - Thompson Creek Metals Co. Inc. priced a restructured $350 million issue of 9¾% five-year senior secured first-priority notes (B1/B/) at 99.076 to yield 10% on Friday, according to an informed source.
The yield printed at the wide end of the 9¾% to 10% yield talk. The reoffer price came in line with discount talk of about 1 point.
The maturity of the notes was decreased to five years from 5.25 years. Call protection was increased to three years from 2.25 years, and the first call premium was decreased to par plus 50% of the coupon from 75% of the coupon. In addition, the 35% equity clawback coverage is extended to three years from 2.25 years.
The deal also underwent covenant changes.
Deutsche Bank Securities Inc. ran the books.
The diversified North American mining company plans to use the proceeds to replace and terminate its existing revolver, to fully fund the remainder of the capital expenditures at the Mt. Milligan copper and gold mine and for general corporate purposes.
Thompson Creek Metals is based in Vancouver, B.C., and Littleton, Colo.
| Issuer: | Thompson Creek Metals Co. Inc.
|
| Face amount: | $350 million
|
| Proceeds: | $346.8 million
|
| Maturity: | Dec. 1, 2017
|
| Securities: | Senior secured first-priority notes
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Senior co-manager: | RBC Capital Markets
|
| Co-managers: | SG CIB, Standard Chartered Bank, UBS Investment Bank
|
| Coupon: | 9¾%
|
| Price: | 99.076
|
| Yield: | 10%
|
| Spread: | 939 bps
|
| Call features: | Callable on Dec. 1, 2015 at 104.875, par on and after Dec. 1, 2016
|
| Equity clawback: | 35% at 109.75 until Dec. 1, 2015
|
| Investor put: | 101%
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 27
|
| Rating: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | SEC registered
|
| Price talk: | 9¾% to 10%, including about 1 point of OID
|
| Marketing: | Roadshow
|
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