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Teck Resources places $4.2B, 3-part secured offering; terms

Teck Resources today completed a massive $4.225 billion, three-part offering of senior secured notes via bookrunners J.P. Morgan, Bank of America and Citi, according to sources. Pricing came at talk on the five- and seven-year tranches, at 11% and 11.375%, respectively, and within 11.75%-area talk on the 10-year tranche, at 11.625%. Moreover, gray-market indications have the notes bid at least 1.5 points higher. The Canadian mining company, formerly known as Teck Cominco, will use proceeds from the deal to repay a portion of its $5.81 billion M&A bridge loan. Terms:

Issuer: Teck Resources Ltd
Ratings: BB+/Ba3
Size: $1.315 billion (face) / $1.252 billion (proceeds)
Issue: senior secured (144A)
Coupon: 9.75%
Price: 95.27
Yield: 11%
Spread: +899
LIBOR Eq: L+845
Maturity: May 15, 2014
Call: nc
Trade: May 5, 2009
Settle: May 8, 2009 (T+3)
Books: JPM/BAS/Citi
Co’s: BMO,CIBC,RBC
Px Talk: 11% area
Notes: w/ three-year equity clawback for up to 35% of issue @ 109.75; w/ change of control put @ 101; carries T+50 make-whole call provision
Issuer: Teck Resources Ltd
Ratings: BB+/Ba3
Size: $1.06 billion (face) / $1 billion (proceeds)
Issue: senior secured (144A)
Coupon: 10.25%
Price: 94.654
Yield: 11.375%
Spread: +875
LIBOR Eq: L+847
Maturity: May 15. 2016
Call: nc4
Trade: May 5, 2009
Settle: May 8, 2009 (T+3)
Books: JPM/BAS/Citi
Co’s: BMO,CIBC,RBC
Px Talk: 11.375% area
Notes: w/ three-year equity clawback for up to 35% of issue @ 110.25; w/ change of control put @ 101; carries T+50 make-whole provision
Issuer: Teck Resources Ltd
Ratings: BB+/Ba3
Size: $1.85 billion (face) / $1.76 billion (proceeds)
Issue: senior secured (144A)
Coupon: 10.75%
Price: 94.893
Yield: 11.625%
Spread: +847
LIBOR Eq: L+833
Maturity: May 15, 2019
Call: nc5
Trade: May 5, 2009
Settle: May 8, 2009 (T+3)
Books: JPM/BAS/Citi
Co’s: BMO,CIBC,RBC
Px Talk: 11.75% area
Notes: w/ three-year equity clawback for up to 35% of issue @ 110.75; w/ change of control put @ 101; carries T+50 make-whole call provision