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First Quantum launches $1B notes offering, stock rises

First Quantum recently reported an 80% year-on-year decline in first quarter earnings
sentinel-copper-mine-credit-first-quantum
The Sentinel open-pit copper mine

First Quantum Minerals (TSX: FM) is launching a senior notes offering totalling $1 billion in principal amount 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 C$22.4 billion ($16.6bn).

The senior notes, due in 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 $750 million under the company’s existing revolving credit facility and the redemption of $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.