First Quantum Minerals Announces $500 Million Cash Tender Offer for Debt Repurchase
Vancouver, Wednesday, 19 February 2025.
First Quantum Minerals launches a $500 million tender offer for senior notes due in 2027, aligning with a $750 million notes offering to bolster its balance sheet and reduce debt.
Tender Offer Details
First Quantum Minerals Ltd. (FM.TO) has initiated a significant debt management strategy today, February 19, 2025, with a cash tender offer for its outstanding 6.875% Senior Notes due 2027 [1]. The company is offering to purchase up to $500 million of these notes, which currently have a total outstanding amount of $1.5 billion [1]. Holders who tender their notes by the Early Tender Time of March 4, 2025, will receive $1,012.00 for every $1,000 principal amount, including a $50.00 Early Tender Premium [1].
Timeline and Pricing Structure
The tender offer follows a carefully structured timeline, with an Early Tender deadline set for March 4, 2025, at 5:00 PM New York City time [1]. After this early period, the tender consideration drops to $962.00 per $1,000 principal amount [1]. The offer will ultimately expire on March 19, 2025, with final settlement expected on March 21, 2025 [1]. Notably, the company maintains flexibility to increase the maximum tender amount up to $750 million at its discretion [1].
Strategic Financial Management
The completion of this tender offer is contingent upon several conditions, including securing net proceeds from a concurrent offering of new senior unsecured notes [1]. To facilitate this significant financial transaction, First Quantum has engaged a consortium of leading financial institutions as Dealer Managers, including Goldman Sachs, J.P. Morgan Securities, BNP Paribas, and ING Bank N.V. [1]. This strategic move demonstrates the company’s active approach to debt management and balance sheet optimization [GPT].