it looks like one of many creative TCM deals to raise funding for Mt. Milligan and Endako.
8,800,000 million units @ $25 for proceeds of $212 million @ 6.5% with a share purchase right attached.
Each tMEDS is a unit composed of a prepaid stock purchase contract and a senior amortizing note due May 15, 2015. Each purchase contract will automatically settle on May 15, 2015 for between 4.5855 and 5.3879 shares of Thompson Creek common stock, subject to adjustment as described in the prospectus supplement relating to the tMEDS offering.
As for the recent financing, there's still no posted rate.
Someone, mentioned that the recent 350 million secured note offering might be @ 12% or greater.
Last year TCM did another $350 million unsecured note offering @ 7.35%
I always thought asset backed "secured note offerings" were set at lower rates.
This offering also came with a Moodys B1 rating which suggests a rate below 7.35%....
Any thoughts ?