(In U.S. dollars, unless noted)
TORONTO, May 5 (Reuters) - Teck Resources (TCKb.TO) said on Tuesday its previously announced bond issue will total $4.225 billion, allowing the company to nearly completely pay off a $5.8 billion bridge loan taken on last year.
Teck took on the bridge loan -- along with $4 billion in term debt -- to buy Fording Canadian Coal Trust for about $13 billion.
The company had been struggling to pay down the bridge loan by October this year, but reached a deal last month deferring most of the payments to 2011.
The bond issue, which was initially announced on Monday, will allow Teck to reduce the bridge loan to $603 million, due in October 2011.
Teck will issue $1.315 billion in five-year notes, $1.06 billion in seven-year notes, and $1.85 billion in ten-year notes. The notes will bear interest of 9.75 percent, 10.25 percent, and 10.75 percent, respectively.
Teck, which changed its name from Teck Cominco last month, has been selling off gold assets to reduce its debt, and is in negotiations to sell a 20 percent stake in its Elk Valley coal asset, which it took full control off by acquiring Fording. (Reporting by Cameron French; editing by Rob Wilson)