First Quantum Minerals Ltd. (TSX: FM) announces that it is launching an offering of $1,600 million aggregate principal amount of senior secured second lien notes due 2029.

The Notes will be senior secured second lien obligations and will rank equally in right of payment with all of the Company’s existing and future senior debt and senior in right of payment to all of the Company’s existing and future subordinated debt. The Notes will be guaranteed, jointly and severally, on a senior basis by certain guarantors as described in the offering memorandum. The Guarantees will rank equally in right of payment to all existing and future senior debt of the Guarantors.

Interest on the Notes will accrue from the issue date and will be payable semi-annually. The interest rate and offering price of the Notes along with certain other terms will be determined at the time of pricing of the offering, subject to market conditions.

The Company intends to apply the net proceeds from the sale of the Notes towards the redemption of all of its outstanding senior notes due 2025 and 2026. Any net proceeds not used for the redemption of any outstanding Senior Notes due 2025 or 2026 will be used for general corporate purposes, including the repayment of the Company’s credit facilities or cash on the balance sheet. The Company has prepared an offering memorandum which will be made available to selected prospective purchasers of the Notes.

The offering of the Notes is part of First Quantum’s comprehensive refinancing and balance sheet strengthening initiatives which include:

• $500 million copper prepayment agreement (announced yesterday and detailed in the Company’s fourth quarter and year-end 2023 results)
• The amendment and extension of its $2.2 billion corporate bank facilities that revises the leverage covenant and extends the maturity profile to April 2027
• $1,000 million equity bought deal offering, also announced today, February 21, 2024
• $1,600 million senior secured second lien notes offering

This news release should be read in conjunction with the News Release dated February 21, 2024 “First Quantum Announces Comprehensive Refinancing Transactions as Part of its Balance Sheet Strengthening Initiatives”.