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DRDGold again extends exchange offer for 6% convertibles
By Laura Lutz
Des Moines, Oct. 3 - DRDGold Ltd. further extended its offer to issue up to $66 million of new 6% senior convertible notes due 2010 in exchange for an equal amount of its 6% senior convertible notes due 2006, according to a 6-K filing with the Securities and Exchange Commission.
The offer now ends at midnight ET on Oct. 16. Originally slated to end July 18, it had previously been extended to Aug. 1, Aug. 15, Aug. 23 and Sept. 29.
The company also amended the offer to add a 50% minimum tender condition. Under the new terms, the company will not be required to exchange any notes unless it receives tenders for at least 50% of the old notes.
As of Sept. 29, $3.06 million of the old notes had been validly tendered, up from $2.06 million on Aug. 23.
Following an increase in the conversion rate, the notes will be convertible into ordinary shares at a rate of 606.06 shares per $1,000 principal amount, up from 512.82 when the offer was announced.
The change translates to a decrease in the conversion price to $1.65 per share from $1.95.
The new notes extend the maturity of the securities to June 12, 2010, compared to Nov. 12, 2006 for the existing notes; give holders an option to convert at a rate of 606.06 shares per $1,000 principal amount of notes, compared to the $3.75 conversion price on the existing notes; and add a call date of June 12, 2009 subject to a 150% hurdle.
The old notes became callable on Nov. 12, 2005, also subject to a 150% hurdle.
The company started the offer on June 16.
DRDGold issued the old notes with original issue discount that will accrue to 2.5% as of Nov. 12, 2006. The new notes will be issued at par but will be redeemed at 102.5% of par at maturity.
The Bank of New York is the exchange agent (+44 20 7964 7495).
Johannesburg, South Africa-based DRDGold is a gold mining company.
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