Teck Resources Ord Shs Class A T.TECK.A

RE:RE:RE:RE:Re: TRASH POSTERS.....

[VOKBLVR]

i do not believe that their is a simple answer to your question. Teck is offering the full face value of the bond plus a premium to a bondholder. Last year when the outlook for Teck was cloudy the bondholders were lined up to get their principal back.Now that things are quite a bit rosier there is virtually no probability of default so the premium must be large enough to have the bondholders think seriously about getting their money back now with all of the accrued interest as opposed to waiting until maturity. I notice that Teck is offering to buy back $650 million or more-depending on how much is tendered. If you see the size of some of the offerings then the amount tendered and from which maturities will make a difference to Teck as to the actual final redemption numbers.
It is good to see them attempting to reduce debt by redeeming the bonds as it is the only debt that shows on the balance sheet. If there are sufficient redemptions then Teck will probably regain the ratios that the rating agencies look to for giving an investment grade rating. If Teck regains their IGR then financing expansions or acquisitions becomes more reasonably priced and the requirements for letters of credit would also be reduced