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Teck Resources Closes
$1.75 Billion Notes Offering

Paul, Weiss advised Teck Resources Limited (Teck) on the closing of its issuance of $500 million of 2.500% Notes due 2018, $750 million of 3.750% Notes due 2023 and $500 million of 5.400% Notes due 2043. The Notes are unconditionally guaranteed on a senior unsecured basis by Teck Metals Ltd., a wholly owned subsidiary of Teck.  After underwriting fees and estimated offering expenses, the aggregate net proceeds to the company totaled approximately $1.727 billion. 

Teck intends to use the net proceeds, together with cash on hand, to fund the redemption of all of the approximately $659.5 million aggregate principal amount of its outstanding 10.25% Senior Notes due 2016, the redemption of all of the approximately $521.3 million aggregate principal amount of its outstanding 10.75% Senior Notes due 2019 and the amounts payable on maturity of the approximately $200 million of its outstanding 7.00% Notes due September 2012, as well as other general corporate purposes.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Goldman, Sachs & Co, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are acting as joint bookrunning managers for the offering.

The Paul, Weiss team advising Teck included corporate partners Christopher Cummings and Edwin Maynard and counsel Stephen Centa; tax partner David Sicular; and environmental counsel William O'Brien.

Posted on Aug 09, 2012
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