Mining Company First Quantum Minerals Announces Financially Bound Offer to Acquire Up to $250 Million Worth of Its 9.375% Senior Secured Second Lien Notes maturing in 2029
First Quantum Minerals Announces Cash Tender Offer for $250 Million of Outstanding Notes
First Quantum Minerals Ltd., a mining company, has announced a cash tender offer to purchase up to $250 million of its outstanding 9.375% Senior Secured Second Lien Notes due 2029. This move is seen as a strategic step towards managing the company's debt profile and reducing future interest obligations.
The tender offer allows First Quantum to repurchase bonds at a discount or at favorable terms, potentially improving its capital structure by reducing the outstanding debt and interest payments on the 9.375% notes. The extension of key dates related to the offer, such as the price determination date and the expiration date, coincides with the upsizing and pricing of new notes, suggesting the company plans to use the proceeds from the new debt issuance to fund the tender offer.
The financing for this tender offer will come from the proceeds of the newly issued upsized notes, as well as the company's existing liquidity resources. Recent company statements highlight ongoing efforts to improve financial flexibility, including initiatives like gold hedging and project expansions intended to strengthen cash flow, further supporting the company's liquidity position to undertake such debt repurchases.
It's important to note that the tender offer is not a notice of redemption, a solicitation to purchase or sell, an offer to purchase or sell, or the solicitation of an offer to purchase or sell any of the securities described herein. Copies of documents relating to the tender offer can be obtained from Kroll Issuer Services Limited.
The consummation of the tender offer is not guaranteed and is subject to various conditions and potential termination. The tender offer will expire on September 3, 2025, and holders of the Notes can receive different amounts based on the timing of their tender.
For questions, requests for assistance, and requests for additional copies of the Offer to Purchase, contact the Tender and Information Agent or the Dealer Managers at their respective addresses set forth in this press release. Media and investor relations contact details are available in the press release.
[1] The Tender Offer is subject to certain conditions, including the successful pricing and closing of the Company's new notes on terms satisfactory to the Company. [2] J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BMO Capital Markets Corp., and Société Générale have been engaged to serve as dealer managers for the Tender Offer. [3] Holders must make their own decisions as to whether to tender their Notes and deliver consents, and, if so, the principal amount of Notes to tender. [4] The settlement of the Notes that have been validly tendered and not validly withdrawn is expected to occur on specified dates, depending on the timing of tender. [5] Holders who tender their Notes after August 19, 2025, but before the expiration date, will be eligible to receive $1,016.25 per $1,000 principal amount of Notes. Those who tender their Notes by August 19, 2025, will be eligible to receive $1,066.25 per $1,000 principal amount of Notes. [6] 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. [7] The Company intends to use a portion of the proceeds from the new notes towards the Offer to Purchase. [8] The Offer to Purchase contains important information which should be read carefully before any decision is made with respect to the Tender Offer. [9] The consummation of the Tender Offer is not guaranteed and is subject to various conditions and potential termination. [10] Contact information for Société Générale for the Tender Offer is available by telephone at: +33 (0) 1 42 13 32 4 or +1 (855) 881-2108 (U.S. Toll Free). [11] The Tender Offer is further described in an offer to purchase dated the same day.
[1] The company plans to use a portion of the proceeds from the new notes towards investing in the Offer to Purchase, demonstrating their commitment to business growth through managing their debt.[2] The strategic move of repurchasing bonds through the Tender Offer, potentially improves First Quantum's business prospects by improving its financial structure and reducing future interest obligations.
