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Thompson Creek Prices 6.50% Tangible Equity Units

Stocks in this article: TC TCM

NYSE: TC TSX: TCM TSX-V: TRX.WT

DENVER, CO, May 7, 2012 /PRNewswire/ - Thompson Creek Metals Company Inc. (the "Company" or "Thompson Creek")  today announced the pricing of an offering of 8,800,000 of its 6.50% tangible equity units ("tMEDS"), each with a stated amount of $25.  The tMEDS priced at $25 each, generating net proceeds of approximately $212.0 million.  Of the $220.0 million aggregate stated amount of tMEDS, approximately $177.5 million will be accounted for as equity and $35.9 million will be accounted for as debt.  The tMEDS offering is expected to close, subject to customary closing conditions, on May 11, 2012.

The Company intends to use the net proceeds from the tMEDS offering, together with the net proceeds from a concurrent offering of Senior Notes due 2019, cash from operations and funds from prior financing arrangements, to complete construction of its Mt. Milligan copper-gold mine.  Neither the offering of the tMEDS nor the concurrent offering of Senior Notes due 2019 is contingent upon completion of the other offering, and each offering is being conducted as a separate public offering.

The underwriters of the tMEDS offering have a 13-day option to purchase up to an additional 1,200,000 tMEDS to cover over-allotments.

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.  The amortizing notes will pay equal quarterly installments of $0.406250 per amortizing note, which will constitute a payment of interest and a partial repayment of principal, and which in the aggregate will be equivalent to a 6.50% cash payment per year with respect to each $25 stated amount of tMEDS.  The amortizing notes will be senior unsecured obligations of the Company.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and RBC Dominion Securities Inc. served as book-running managers of the tMEDS offering.  The offering is subject to approval of the Toronto Stock Exchange.

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