By Abigail W. Adams
Portland, Me., Oct. 14 – Argonaut Gold Inc. priced $50 million of five-year convertible debentures at par to yield 4.625% in a bought deal, according to a company news release.
BMO Capital Markets Corp. and Scotiabank were joint bookrunners for the offering, which carries a greenshoe of $7.5 million.
The deal will be marketed via short-form prospectus in each province in Canada except Quebec and via private placement in the United States.
The notes are non-callable until Nov. 30, 2023 and then subject to a 125% hurdle, which will be based on the volume-weighted average price of shares on the Toronto Exchange converted to USD.
Proceeds will be used for the advancement of the company’s gold mining project in Ontario, or the Magino project, and for general corporate purposes, according to the release.
In addition to the convertible debenture offering, the company expanded its revolving credit facility to $125 million to secure financing for the project.
| Issuer: | Argonaut Gold Inc.
|
| Securities: | Unsecured convertible debentures
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| Amount: | $50 million
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| Greenshoe: | $7.5 million
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| Maturity: | Nov. 30, 2025
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| Bookrunners: | BMO Capital Markets Corp. and Scotiabank
|
| Coupon: | 4.625%
|
| Price: | Par
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| Yield: | 4.625%
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| Conversion price: | $2.86
|
| Conversion rate: | 350.1155
|
| Call options: | Non-callable until Nov. 30, 2023 and then subject to a 125% hurdle
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 30
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| Distribution: | Via short-form prospectus in Canada and via private placement in the U.S.
|
| Stock symbol: | TSX: AR
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| Stock price: | C$2.78 at market close Oct. 14
|
| Market capitalization: | C$806 million
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