S&PGR Report Looks At FAQs On Teck Resources' Bond Issuance
DOW JONES & COMPANY, INC. 9:20 AM ET 5/27/2016
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The following is a press release from Standard & Poor's:
TORONTO (S&P Global Ratings) May 27, 2016--Vancouver-based, globally
diversified mining company Teck Resources Ltd.(TCK) announced the closing of its
senior unsecured notes offering of US$1.25 billion on May 26, 2016, with
proceeds repaying its debt maturing over the next three years. Subsidiaries
that account for the majority of the company's assets will guarantee the
notes, along with Teck's amended bank facilities (a US$3 billion revolver and
letters of credit [LC]). However, those same guarantees don't extend to the
existing unsecured notes.
In a report released today, entitled "What's Behind The Ratings On Teck
Resources Ltd. Following Its Recent Bond Issuance?", S&P Global Ratings
addresses some frequently asked questions on Teck's proposed unsecured notes
issuance and its impact on the ratings we have on the company.
In our view, the proposed transaction and amendments to the bank facilities
(corporate and letters of credit [LC] revolvers) are noteworthy for several
reasons. "In particular, we did not expect Teck would have easy access to
unsecured debt markets in 2016 and we rate the proposed unsecured notes above
the corporate credit rating -- which is more typical for secured debt
instruments," said S&P Global Ratings credit analyst Jarrett Bilous.
Only a rating committee may determine a rating action and this report does not
constitute a rating action.
The report is available to subscribers of RatingsDirect at
www.globalcreditportal.com and at www.spcapitaliq.com. If you are not a
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Primary Credit Analyst: Jarrett Bilous, Toronto (1) 416-507-2593;
jarrett.bilous@spglobal.com
Media Contact: Olayinka Fadahunsi, New York 212-438-5095;
olayinka.fadahunsi@spglobal.com
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(END) Dow Jones Newswires
05-27-160920ET
