First Quantum launches US$1B debt offering

First Quantum Minerals (TSX: FM) is offering US$1 billion in senior notes to repay existing loans and redeem previously issued notes.

First Quantum’s stock was up 1.2% by 11:30 a.m. EDT following the announcement of the notes offering, giving the Vancouver-based copper miner a market capitalization of $22.4 billion.

The senior notes, due 2031, will be guaranteed by certain subsidiaries of the company. The interest rate and offering price, along with certain other terms, will be determined at the time of pricing of the offering, First Quantum said.

The gross proceeds will be used towards the repayment of US$750 million under the company’s existing revolving credit facility and the redemption of US$250 million principal amount of outstanding senior notes due 2025.

The new senior notes were assigned a “B+” rating by Fitch, which has maintained this rating for First Quantum debt since its upgrade from “B” in 2021.

Last month, First Quantum reported an 80% year-on-year decline in first quarter earnings, citing interruptions at its Panama operations as well as seasonal impact on its mines in Zambia.