Teck Announces Redemption of Notes
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 30, 2012) - Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) ("Teck") announced today that it has issued a notice of redemption to redeem, on August 29, 2012, all of the approximately US$659.5 million principal amount of its outstanding 10.25% senior notes due 2016 ("2016 notes").
Teck intends to use the net proceeds from its previously announced offering of US$1.75 billion aggregate principal amount of senior notes to fund the redemption.
Teck expects, based on current interest rates, to record an estimated net after-tax accounting charge of approximately US$202 million in the third quarter of 2012 in connection with the redemption of the 2016 notes. The Bank of New York Mellon Trust Company, N.A., as trustee, has distributed the notice of redemption to registered holders of the 2016 notes. This news release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities.
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). The forward-looking statements in this news release include statements concerning the expected net proceeds from the offering of the new senior notes, the size and timing of the accounting charge related to the redemption.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, risks relating to conditions in financial markets, satisfaction of closing conditions of Teck's new offering, satisfaction of the requirements to enable redemption of the 2016 notes, future U.S. Treasury rates, volatility in interest rates and exchange rates. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK.
Posted: July 30, 2012