Mining company, First Quantum Minerals, announces pricing and expansion of its senior notes offering.
The UK-based mining company, First Quantum Minerals Ltd., has successfully completed an offering of $1 billion in 7.250% senior notes due 2034, marking a strategic refinancing move. The notes, which will be senior unsecured obligations of the company and guaranteed by certain of its subsidiaries, are intended to refinance higher-cost debt, extend debt maturity profiles, and lower borrowing costs.
The issue price of the notes is 100.000%, and interest on them will accrue at a rate of 7.250% per annum, payable semi-annually. Settlement for the notes is expected to take place on or about August 20, 2025.
The company has made numerous assumptions in relation to the offering, including assumptions about the ability to price the notes on terms that are acceptable to the company, the timing of the closing of the offering, and the ability to achieve its goals. It is worth noting that the 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 will not be offered or sold within the U.S. or to, or for the account or benefit of, U.S. Persons.
In addition to the bond offering, First Quantum Minerals Ltd. entered a $1 billion gold streaming deal with Royal Gold Inc. This deal allows the company to monetize gold by-product production from the Kansanshi mine, receiving an upfront cash payment to support capital expenditures, working capital needs, and debt repayment. Under the streaming agreement, Royal Gold will purchase gold ounces based on copper output, with staggered delivery amounts.
This move complements the bond refinancing by bolstering First Quantum’s financial position amid rising gold prices and ongoing investment in the Kansanshi copper expansion. The proceeds from the sale of the notes will be used to fund a tender offer for its existing 6.875% senior notes due 2027, to refinance a portion of its existing 9.375% senior secured second lien notes due 2029, and to pay related fees, costs, and expenses.
In the UK, no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended, the "UK PRIIPs Regulation") for offering or selling the notes or otherwise making them available to retail investors has been prepared. In the EEA, no key information document required by Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the securities or otherwise making them available to retail investors has been prepared.
This announcement is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of the securities referred to herein in Canada. This announcement is only directed at "relevant persons" as defined in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. Neither the content of the company's website nor any website accessible by hyperlinks on the company's website is incorporated in, or forms part of, this announcement.
For more information, visit the company's website at www.first-quantum.com or contact Investor Relations at [email protected] or Media Relations at [email protected]. In the UK, this announcement will be made pursuant to an exemption under the Prospectus Regulation from the requirement to publish a prospectus for offers of the securities referred to herein.
Certain information contained in this news release constitutes "forward-looking statements" and "forward-looking information" under applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking statements and information. Forward-looking statements and information are based on certain assumptions and estimates that the company believes are reasonable as of the date they are made.
[1] First Quantum Minerals Ltd. (2023). First Quantum Minerals Ltd. Announces $1 Billion Senior Unsecured Bond Offering and $1 Billion Gold Streaming Agreement with Royal Gold Inc. [Press Release]. Retrieved from https://www.first-quantum.com/en/media/news-releases/2023/first-quantum-minerals-ltd-announces-1-billion-senior-unsecured-bond-offering-and-1-billion-gold-streaming-agreement-with-royal-gold-inc
[3] First Quantum Minerals Ltd. (2023). First Quantum Minerals Ltd. Announces $1 Billion Senior Unsecured Bond Offering and $1 Billion Gold Streaming Agreement with Royal Gold Inc. [Press Release]. Retrieved from https://www.first-quantum.com/en/media/news-releases/2023/first-quantum-minerals-ltd-announces-1-billion-senior-unsecured-bond-offering-and-1-billion-gold-streaming-agreement-with-royal-gold-inc
[5] First Quantum Minerals Ltd. (2023). First Quantum Minerals Ltd. Announces $1 Billion Senior Unsecured Bond Offering and $1 Billion Gold Streaming Agreement with Royal Gold Inc. [Press Release]. Retrieved from https://www.first-quantum.com/en/media/news-releases/2023/first-quantum-minerals-ltd-announces-1-billion-senior-unsecured-bond-offering-and-1-billion-gold-streaming-agreement-with-royal-gold-inc
The successful $1 billion senior notes offering by First Quantum Minerals Ltd. signals a strategic move towards refinancing, extending debt maturity profiles, and lowering borrowing costs within the finance sector of the business industry. In addition to this bond offering, the company entered a $1 billion gold streaming deal with Royal Gold Inc., a maneuver aiming to monetize gold by-product production and strengthen its financial position in the industry.
