By Rebecca Melvin
New York, Feb. 18 - Uranium One Inc. priced C$250 million of five-year convertible debentures on a bought-deal basis to yield 7.5% initially, and then once country approval is received from Kazakhstan, the coupon will step down to 5%, with an initial conversion premium of 25.8%, according to a syndicate source.
Kazakh approvals are anticipated during 2010, the syndicate source said.
There is an over-allotment option for an additional C$37.5 million of debentures.
The Regulation S issue was made via a syndicate of underwriters led by GMP Securities LP and including Canaccord Financial Ltd., BMO Capital Markets, CIBC World Markets Inc., RBC Capital Markets and Paradigm Capital Inc.
The unsecured, subordinated debentures will not be callable.
After the approval date, the convertibles will be convertible, at the option of the holder, into common shares of the company at a conversion rate of 250 common shares per debenture, which is equal to an initial conversion price of C$4.00 per common share.
The debentures will be direct, unsecured obligations of the company, subordinated to its existing credit facility and 4.25% convertible debentures due 2011.
Proceeds will be used for potential acquisitions, for working capital, for general corporate purposes and to finance its operations and development projects.
Based in Vancouver, B.C., Uranium One is a uranium producer with assets located in Kazakhstan, the United States, South Africa and Australia.
| Issuer: | Uranium One Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$250 million
|
| Greenshoe: | C$37.5 million
|
| Maturity: | March 12, 2015
|
| Underwriters: | Syndicate led by GMP Securities LP and including Canaccord Financial Ltd., BMO Capital Markets, CIBC World Markets Inc., RBC Capital Markets, Paradigm Capital Inc.
|
| Coupon: | 7.5%, then 5%
|
| Price: | Par, C$1,000
|
| Yield: | 7.5%, then 5%
|
| Conversion premium: | 25.8%
|
| Conversion price: | C$4.00 per common share
|
| Call feature: | Non-callable
|
| Pricing date: | Feb. 18
|
| Settlement date: | March 12
|
| Distribution: | Regulation S, short form prospectus in Canadian provinces except Quebec
|
| Stock listing: | Toronto: UUU
|
| Stock reference: | C$3.18
|
| Market capitalization: | About C$1.6 billion
|
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