6th May 2014 11:13
LONDON (Alliance News) - First Quantum Minerals Ltd Tuesday said it is launching an offering of USD650.0 million of senior notes, with the proceeds intended to be used to partially pay down, without cancelling, its completed five-year revolving credit facility and to pay fees of the offering.
In a statement, First Quantum Minerals said the notes, which are due in 2022, will be senior obligations and will be guaranteed by "certain of the company's subsidiaries."
Interest will be payable semi-annually. The interest rate, offering price and other terms will be determined at the time of pricing of the offering, subject to market conditions.
Separately, First Quantum said it has completed a syndication of its USD2.5 billion five-year term loan and revolving facility with an up-scaling of the facility to GBP3.00 billion due to oversubscribed syndication demand.
The facilities are made up of a USD1.2 billion term loan facility available to draw until April 8, 2016 with a margin of 2.75%, as well as a USD1.8 billion revolving credit facility available to draw until March 8, 2019 with a margin of 2.75% a year. All outstanding loans mature on April 8, 2019.
"The success of this syndication highlights the excellent relationships and trust that First Quantum enjoys with financial institutions worldwide", Philip Pascall, Chairman and Chief Executive, said in a statement.
"This facility supports our growth strategy and the USD500.0 million up-scaling allows us to increase the number of participating syndicate banks further enhancing our financing flexibility," Pascall added.
BNP Paribas and Standard Chartered Bank were the initial mandated lead arrangers and underwriters.
ABSA Corporate and Investment Bank, Barclays Bank Zambia PLC, Barclays Bank Mauritius Ltd, Credit Agricole Corporate and Investment Bank, HSBC Bank PLC, ING Bank NV, and Societe Generale joined as mandated lead arrangers.
Citibank NA, Export Development Canada, FirstRand Bank Ltd, Natixis SA, Nedbank Ltd joined as lead arrangers.
Credit Suisse AG, Deutsche Bank AG, JP Morgan Chase Bank, Royal Bank of Canada, and Standard Bank of South Africa also joined the syndication, as will Jefferies Finance LLC.
First Quantum shares were Tuesday quoted at 1,099.00 pence, down 3.0%.
By Samuel Agini; [email protected]; @samuelagini
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