Quantum First Unveils Offering of $750 Million Senior Notes
First Quantum Minerals Ltd., a leading mining company, has announced a $750 million offering of senior notes as part of a refinancing plan. The new notes will be senior unsecured obligations, guaranteed by certain subsidiaries, with interest accruing from the issue date and payable semi-annually.
The exact interest rate and offering price will be determined at pricing and depend on market conditions, but the new notes are expected to carry a lower interest rate than the existing 6.875% senior notes due 2027. The company intends to use the gross proceeds from this offering, along with cash on its balance sheet, to fund a tender offer to repurchase the existing $750 million principal amount of the 6.875% senior notes due 2027.
The tender offer will expire on August 12, 2025, at 5:00 PM (New York time). Any remaining notes not tendered will be redeemed on or after October 15, 2025, at 100% of principal plus accrued interest. This refinancing initiative aims to optimize First Quantum's capital structure by reducing interest costs, extending debt maturities, and minimizing liquidity risks.
The dealers managing the tender offer are J.P. Morgan Securities, Goldman Sachs, BMO Capital Markets, and Société Générale. For media relations, contact James Devas, Manager, Corporate Affairs at 44 207 291 6630 or [email protected].
For further information, contact Bonita To, Director, Investor Relations at (416) 361-6400 or [email protected].
Key Details of the Offering
- Principal amount: $750 million
- Existing notes tendered: 6.875% Senior Notes due 2027 totaling $750 million
- Interest rate on new notes: To be determined at pricing, expected to be lower than 6.875%
- Offering price: To be determined at pricing based on market conditions
- Interest payments: Semi-annual
- Use of proceeds: Fund tender offer to repurchase existing senior notes and pay related fees and expenses
- Tender offer expiration: August 12, 2025, at 5:00 PM (New York time)
- Redemption of any remaining notes: On or after October 15, 2025, at par plus accrued interest
Important Notes
- The securities are not intended for retail investors in the European Economic Area (EEA) or the United Kingdom (UK).
- The Notes are only available to relevant persons and any invitation, offer, or agreement to subscribe, purchase, or otherwise acquire the securities will be engaged in only with relevant persons.
- The distribution of this announcement may be restricted by law in certain jurisdictions.
- The offering is under the symbol TSX: FM, OTC: FQVLF.
- Offering or selling the securities to retail investors in the EEA or the UK may be unlawful under the PRIIPS Regulation or the UK PRIIPS Regulation.
- No key information documents required by the PRIIPS Regulation or the UK PRIIPS Regulation have been prepared for retail investors in the EEA or the UK.
- This communication is only directed at relevant persons, defined as those having professional experience in matters relating to investments, high net worth entities, or other categories of persons to whom it would be lawful to distribute.
- The Notes will be senior unsecured obligations of First Quantum and guaranteed by certain subsidiaries.
- Certain information contained in this news release constitutes forward-looking statements and information.
This move is part of a strategic debt restructuring to reduce leverage and interest expenses, given First Quantum's sizeable debt and debt-to-EBITDA ratio around 4.15x.
The company aims to use the proceeds from the offering of senior notes to fund a tender offer for the existing 6.875% senior notes due 2027, with the move being part of a strategic debt restructuring to reduce leverage and interest expenses. This business decision is expected to optimize First Quantum's finance structure by lowering interest costs, extending debt maturities, and minimizing liquidity risks. The company intends to invest the funds strategically for the betterment of its business.
