Last week Teck Resources (NYSE:TCK) (TSE:TCK-B) announced they were going to buy back $600 million in senior secured notes, along with $750 million in senior unsecured notes.
They've added to the first of the two, increasing the amount they want to buy back their senior secured notes to $800 million, a $200 million increase. These notes are due in 2014 and 2016.
Assuming the $800 million buyback is achieved, that would give Teck an accounting charge of about $240 million, before taxes, in the third quarter of 2010.
The buyback is a strategy by Teck to lower costs and expenses by reducing the amount of interest they must pay yearly over the short term.
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