Teck in bought deal

Teck (TEK-T) is issuing $150 million of new equity through an offering of 10 million units priced at $15 each.

The financing is a bought deal by a syndicate led by First Marathon Securities and RBC Dominion Securities. Each unit consists of one Class B share and a half warrant that entitles the holder of a whole warrant to buy an additional Class B share at $18 any time before May 26, 2004, subject to earlier termination of the exercise right in certain events. The transaction is expected to close in late May.

Proceeds from the issue are estimated to reach $143.7 million, a portion of which Teck will use to augment working capital and investments. The transaction will leave Teck with 106.9 million shares outstanding or 114.1 million fully diluted. The company’s cash position is expected to rise to about $386 million.