By Jennifer Chiou
New York, Jan. 30 - African Minerals Ltd. announced plans to raise $300 million in an offering of convertible bonds due 2017. The issuer has the option to increase the issue by up to $50 million.
The bonds will be priced at par to yield 8.5%.
The conversion price is set at $10.98 per share, which is £7.00 per share converted into dollars at the current exchange rate. The conversion price is a 35.66% premium to the closing share price (London: AMI) on Monday.
The bonds are callable at 110 after three years. They are also callable if less than 15% of the original issue amount is outstanding.
In addition, participants will have the option to subscribe for additional bonds equal to 12.5% of the initially issued amount.
Based on the $300 million size, 27 million of African Minerals shares would be issuable upon conversion of the bonds. That tally makes up 8.3% of the current number of issued shares.
Settlement is anticipated for Feb. 10.
Proceeds are earmarked for the continued expansion of production at the company's phase 1 Tonkolili iron ore operation to 20 million tons per year.
Based in Hamilton, Bermuda, African Minerals is a mineral exploration company with significant interests in Sierra Leone, West Africa.
| Issuer: | African Minerals Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $350 million (maximum)
|
| Greenshoe: | 12.5% of issue amount
|
| Price: | Par
|
| Conversion price: | $10.98 per share (£7.00 per share converted into dollars)
|
| Conversion premium: | 35.66%
|
| Call: | At 110 after three years
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 10
|
| Stock symbol: | London: AMI
|
| Stock price: | 5.16p at close Jan. 30
|
| Market capitalization: | £169.34 million
|
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