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TORONTO - First Quantum Minerals Ltd. (TSX:FM), a mining company with a market capitalization of $13.5 billion, announced Wednesday it is launching an offering of $750 million in senior notes, according to a company press release.
The notes will be senior unsecured obligations guaranteed by certain subsidiaries of the mining company. Interest on the notes will accrue from the issue date and will be payable semi-annually, with the interest rate and offering price to be determined at pricing. According to InvestingPro data, the company currently maintains a total debt of $7.67 billion and a healthy current ratio of 2.0.
First Quantum plans to use the proceeds from the notes offering, along with cash on its balance sheet, to fund a concurrent tender offer for its existing 6.875% senior notes due 2027 and to pay related fees and expenses. The company generated $1.85 billion in EBITDA over the last twelve months, though its levered free cash flow was negative at -$132 million.
The notes will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold within the United States except pursuant to applicable exemptions from registration requirements.
The company specified that the securities are not intended for retail investors in the European Economic Area or the United Kingdom, and will only be available to professional investors and eligible counterparties in those jurisdictions.
First Quantum Minerals is a global mining and metals company producing copper, nickel, gold, and zinc. The company operates mines in various countries including Panama, Zambia, and Finland.
The announcement comes as part of the company’s ongoing debt management strategy, though specific terms of the offering will depend on market conditions at the time of pricing.
In other recent news, First Quantum Minerals Ltd. has initiated a cash tender offer for its outstanding 6.875% Senior Notes due in 2027. The total principal amount for these notes is $750 million. This tender offer is set to expire on August 12, 2025, at 5:00 pm New York City time. The purchase price for the notes will be determined based on a fixed spread in addition to the yield of the 4.250% U.S. Treasury security due October 15, 2025. These developments are part of First Quantum’s ongoing financial strategies. The company has not disclosed any additional plans related to this tender offer. Investors may want to monitor further announcements from First Quantum for any updates on this matter.
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