Teck Saves $27 Million in First Sale Since Rating Increase: Canada Credit

Teck Resources Ltd. will save as much as C$27 million ($26.4 million) a year through 2014 in interest cosnational iron ore mining company operates mines in nigeriats with its first debt sale since winning investment-grade credit ratings in April.

Canada’s largest base-metals producer sold $300 million of 7-year notes and $450 million of 30-year bonds yesterday at 1.60 percentage points and 1.98 percentage points, respectively, over U.S. Treasuries, said Marcia Smith, the company’s vice president of corporate affairs. When Teck last sold debt in May 2009, the securities due in 2014 and 2016 were priced at spreads of 8.99 percentage points and 8.75 percentage points. “It’s had a very dramatic shift in its fortunes,” Ernie Lalonde, a senior vice president at DBRS Ltd. who covers mining companies, said by phone from Toronto. “Their improved credit ratings across the board certainly help the fact of issuing the debt. Essentially they get a better interest rate, and just as importantly, a greater market acceptance.”