Mining Company First Quantum Offers to Buy Back Its 2027 Senior Notes for Cash at Set Prices
First Quantum Minerals Ltd. Announces Tender Offer for 6.875% Senior Notes due 2027
First Quantum Minerals Ltd. has announced a cash tender offer for its outstanding 6.875% Senior Notes due 2027. The offer, which is further detailed in an offer to purchase dated today, will expire at 5:00 pm New York City time on August 12, 2025, with a possible extension.
The tender offer allows holders to receive consideration for each $1,000 principal amount of notes tendered. This consideration is calculated based on a fixed spread plus the yield of a U.S. Treasury Reference Security, with the price determined on a "Price Determination Date." Tendering holders will also receive accrued and unpaid interest from the last interest payment date to, but not including, the Settlement Date.
Holders may withdraw tenders anytime up to the Expiration Date. No tenders submitted after the Expiration Date are valid. The purpose of this tender offer is part of a refinancing strategy, with the company aiming to reduce leverage and extend debt maturities by potentially acquiring up to 90% of the outstanding $750 million in 2027 notes. This will be funded by proceeds from a new $1 billion issuance of 7.25% Senior Notes due 2034, which offers a lower interest cost.
The key dates for the tender offer have been extended from August 12 to August 18 (Price Determination Date) and August 21 (Expiration and Settlement Dates) to align with the new notes issuance and to encourage maximum holder participation.
Société Générale can be contacted for the tender offer at +33 (0) 1 42 13 32 4 or +1 (855) 881-2108 (U.S. Toll Free). Questions, requests for assistance, and requests for additional copies of the Offer to Purchase may be directed to the Tender and Information Agent or the Dealer Managers at their addresses set forth in this press release.
Investor Relations can be contacted at Bonita To, Director, Investor Relations at (416) 361-6400 or Toll-free: 1 (888) 688-6577 and E-Mail: [email protected]. For further information about the tender offer, visit the company's website at www.first-quantum.com.
It is recommended that any holder who is in any doubt as to the action it should take seeks its own financial and legal advice immediately from its stockbroker, bank manager, solicitor, accountant, or other independent financial or legal adviser. Tendered notes may be withdrawn at any time before the Expiration Date.
Upon completion of the tender offer, the notes accepted for purchase will be canceled. The tender offer is made solely pursuant to the Offer to Purchase.
Media Relations can be contacted at James Devas, Manager, Corporate Affairs at 44 207 291 6630 or E-Mail: [email protected].
The company may redeem any notes not tendered after October 15, 2025, under certain conditions. It is important to note that the New Notes will not be registered under the U.S. Securities Act, or the securities laws of any state of the U.S. or other jurisdictions and the Notes will not be offered or sold within the U.S. or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S of the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and the applicable laws of other jurisdictions.
Any deadlines set by any intermediary will be earlier than the deadlines specified in the Offer to Purchase. The deadlines set by DTC may also be earlier than the relevant deadlines set out in the Offer to Purchase. The Offer to Purchase contains important information that should be read carefully before any decision is made with respect to the tender offer.
- The tender offer by First Quantum Minerals Ltd. involves investing in a refinancing strategy, as the company aims to reduce leverage and extend debt maturities by purchasing up to 90% of the outstanding $750 million in 2027 notes through a new $1 billion issuance of 7.25% Senior Notes due 2034.
- This business move in the finance industry is expected to have an impact on the company's future, as the success of the tender offer could potentially lead to a lower interest cost for the new notes and a more manageable debt structure.
