Mining company First Quantum Minerals makes financial announcement, offering cash to purchase up to $250 million worth of its 9.375% Senior Secured Second Lien Notes due in 2029.
First Quantum Minerals Ltd. (FQML) has announced a cash tender offer to purchase up to $250 million of its outstanding 9.375% Senior Secured Second Lien Notes due 2029. This move allows the company to buy back part of its outstanding debt before maturity.
The tender offer is part of a broader debt refinancing strategy, which includes raising $1.0 billion of 7.250% senior notes due 2034. The proceeds from this offering will be used to refinance part of the 2029 notes, buy back other senior notes due 2027, and cover related costs and expenses.
The 7.250% senior notes, issued in August 2025, were initially set at $750 million but have now been increased to $1.0 billion. Settlement for these notes is expected around August 20, 2025.
Early results of the tender offer were released on August 21, 2025, indicating progress in repurchasing the targeted amount.
Holders who tender early will receive $1,066.25 per $1,000 principal amount of Notes, consisting of the Tender Consideration plus a $50.00 early tender premium. Those who tender after the early deadline but before the expiration date will receive $1,016.25 per $1,000 principal amount of Notes.
The tender offer will expire on September 3, 2025. The consummation of the tender offer is subject to the satisfaction or waiver of certain conditions, including the successful pricing and closing of the company's concurrent offering of $1.0 billion senior notes due 2034.
Copies of documents relating to the Tender Offer may be obtained from Kroll Issuer Services Limited. Questions, requests for assistance, and requests for additional copies of the Offer to Purchase may be directed to the Tender and Information Agent or the Dealer Managers at their addresses set forth in this press release.
This tender offer reflects FQML's strategy to manage its debt maturity profile and reduce interest expenses by refinancing higher-cost debt with a new lower-rate senior note issue.
Contact information for Media Relations is James Devas, Manager, Corporate Affairs, at 44 207 291 6630 or [email protected]. For investor relations inquiries, contact Bonita To, Director, Investor Relations, at (416) 361-6400, Toll-free: 1 (888) 688-6577, or email [email protected].
For inquiries related to the Tender Offer, contact Société Générale at +33 (0) 1 42 13 32 4 or +1 (855) 881-2108 (U.S. Toll Free). A cautionary statement on forward-looking information is included in the news release. The Tender Offer is not a notice of redemption, solicitation to purchase or sell, an offer to purchase or sell, or a solicitation of an offer to purchase or sell any securities described herein. The New Notes will not be registered under the U.S. Securities Act, or the securities laws of any state of the U.S. or other jurisdictions and will not be offered or sold within the U.S. or to, or for the account or benefit of, U.S. Persons. This press release must be read in conjunction with the Offer to Purchase.
The tender offer is part of First Quantum Minerals Ltd.'s (FQML) strategy to refinance a portion of its debt, which also includes investing in lower-rate senior notes, demonstrating the company's focus on managing the debt maturity profile and reducing interest expenses within the finance industry.
This move by FQML is indicative of its broader industry trend, where businesses seek to invest in more financially favorable options and restructure their debt to sustain growth and longevity.
