Mining company, First Quantum Minerals, reveals pricing details and expands the scope of its senior notes offering.
First Quantum Minerals Ltd., a global mining company, has successfully completed a $1 billion bond offering, marking a significant step towards refinancing higher-cost debt and extending the maturity profile of its obligations [1]. The offering, which was initially planned for $750 million, was increased to $1 billion due to strong investor demand.
The 7.250% senior notes due in 2034 will primarily be used to refinance approximately $2.35 billion of near-term debt, significantly lowering the company's leverage ratio (debt-to-EBITDA) from 4.15x to around 1x. This strategic move strengthens First Quantum’s financial position and liquidity [1].
A portion of the proceeds will also be allocated towards the Kansanshi S3 expansion project, expected to increase copper output to between 160,000 and 190,000 tonnes per year. The expansion project is a strategic move to cater to growing copper demand, particularly in the context of global decarbonization trends and the increasing use of copper in electric vehicles (EVs) and renewable energy technologies [1].
Although the bonds are not specifically linked to ESG initiatives, they indirectly support these trends by enabling expansion in copper production. However, it's important to note that the offering carries risks, including copper price volatility, potential operational delays, and geopolitical exposure [1][5].
The bonds will be senior unsecured obligations of First Quantum Minerals Ltd. and will be guaranteed by certain of the company's subsidiaries. Settlement for the Notes is expected to take place on or about August 20, 2025, subject to customary conditions [1].
First Quantum Minerals Ltd. has emphasised that the offering or selling of the securities to retail investors in the European Economic Area (EEA) or the United Kingdom (UK) may be unlawful under the PRIIPs Regulation or the UK PRIIPs Regulation. No key information document has been prepared for such offers or sales [1].
For further information, investors can contact Bonita To, Director, Investor Relations, at (416) 361-6400, Toll-free: 1 (888) 688-6577, or via email at [email protected]. Media enquiries can be directed to James Devas, Manager, Corporate Affairs, at 44 207 291 6630 or via email at [email protected] [1].
It's worth noting that readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law [1].
For more information about First Quantum Minerals Ltd., including additional risks, uncertainties, and other factors relating to forward-looking statements and information, please visit the company's website at www.first-quantum.com [1].
[1] - First Quantum Minerals Ltd. Press Release, 15th June 2023. [5] - S&P Global Ratings, Credit Rating Report, First Quantum Minerals Ltd., 1st June 2023.
The bond offering by First Quantum Minerals Ltd., totaling $1 billion, not only caters to the company's business needs in refinancing existing debt but also supports the industry's growth, particularly in finance sectors, as a portion of the proceeds will be allocated towards the expansion of the Kansanshi S3 project. This strategic move strengthens the company's liquidity and position in the global business landscape.
