Mining
Thursday, February 29th, 2024 7:15 pm EDT
Key Points
- Completion of Bought Deal Offering and Notes Offering: First Quantum Minerals Ltd. has successfully completed a bought deal offering of 139,932,000 common shares, including the full exercise of the underwriters’ over-allotment option, at a price of C$11.10 per share, resulting in gross proceeds of approximately C$1,553,245,200 (approximately $1,150 million). Additionally, the company concluded its previously announced offering of $1,600 million aggregate principal amount of 9.375% senior secured second lien notes due 2029, marking a significant milestone in its comprehensive refinancing and balance sheet strengthening initiatives.
- Syndicate of Underwriters and Use of Proceeds: The syndicate of underwriters, led by RBC Capital Markets, BMO Capital Markets, and Goldman Sachs as joint bookrunners, played a pivotal role in the offerings. First Quantum intends to utilize the net proceeds from the offerings primarily for the redemption of all its outstanding senior notes due 2025 and 2026, thereby enhancing the company’s liquidity profile and supporting its general corporate purposes. This strategic move aligns with First Quantum’s commitment to strengthening its balance sheet and advancing operational excellence at its Zambian operations, particularly the S3 Expansion at Kansanshi.
- Comprehensive Refinancing Initiatives and Future Outlook: The successful completion of the offerings represents a significant step in First Quantum’s comprehensive refinancing efforts, which also include the amendment and extension of the company’s corporate bank facilities. With the effective implementation of the Amendment and Extension, along with the expected redemptions of the 2025 and 2026 Notes on March 4, 2024, First Quantum is poised to reinforce its financial position and pursue its strategic objectives with confidence. Tristan Pascall, Chief Executive Officer of First Quantum, expressed gratitude to shareholders, banking partners, and bondholders for their strong support, emphasizing the company’s commitment to delivering operational excellence and driving value for stakeholders.
First Quantum Minerals Ltd. has completed the previously announced bought deal offering of common shares of the company. First Quantum issued 139,932,000 common shares (including 18,252,000 common shares issued pursuant to the exercise in full of the underwriters’ over-allotment option) at a price of C$11.10 per common share for aggregate gross proceeds of C$1,553,245,200 (approximately $1,150 million).
(In United States dollars, except “C$” for Canadian dollars where noted)
The syndicate of underwriters was led by RBC Capital Markets, BMO Capital Markets and Goldman Sachs as joint bookrunners and included BNP Paribas (Canada) Securities Inc., ING Bank N.V., J.P. Morgan Securities Canada Inc., Absa Bank Limited, CIBC World Markets Inc., Natixis Securities Americas LLC, The Standard Bank of South Africa Limited, TD Securities Inc., Canaccord Genuity Corp. and National Bank Financial Inc.
In addition to the completion of the Equity Offering, First Quantum announced today that it has completed its previously-announced offering of $1,600 million aggregate principal amount of 9.375% senior secured second lien notes due 2029 (the “Notes Offering” and together with the Equity Offering, the “Offerings”).
The Company intends to use the net proceeds from the Offerings for the redemption of all of its outstanding senior notes due 2025 (the “2025 Notes”) and all of its outstanding senior notes due 2026 (the “2026 Notes “), to enhance the Company’s liquidity profile and for general corporate purposes.
The Offerings are part of First Quantum’s comprehensive refinancing and balance sheet strengthening initiatives, which also include the amendment and extension of First Quantum’s $2.2 billion corporate bank facilities that revises the leverage covenant and extends the maturity profile to April 2027 (the “Amendment and Extension”).
With the closing of the Offerings, the Amendment and Extension will become effective. The redemptions of the 2025 Notes and the 2026 Notes are also expected to be completed on March 4, 2024, as the financing condition relating to such redemptions will be satisfied.
“I would like to thank our shareholders, banking partners and bondholders for their confidence and strong support for First Quantum,” commented Tristan Pascall, Chief Executive Officer of First Quantum. “The successful completion of this comprehensive refinancing has strengthened the Company’s balance sheet and will enable the Company to deliver on the S3 Expansion at Kansanshi. The Company will continue to advance additional balance sheet initiatives in a disciplined manner and will remain focused on delivering operational excellence at its Zambian operations.”
We seek Safe Harbor.
