By Jennifer Chiou and Rebecca Melvin
New York, Jan. 31 - African Minerals Ltd. priced $350 million of five-year convertible bonds at par to yield 8.5%. The initial conversion premium is 35.66%.
The company announced some of the terms of the issue on Monday, and more information was released on Tuesday.
The Regulation S issue has a $43.75 million greenshoe.
The conversion price is set at $10.98 per share, which is £7.00 per share converted into dollars at the exchange rate at pricing. The conversion price is a 35.66% premium to the 5.16p 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.
Standard Bank plc and Deutsche Bank AG, London Branch, were the joint bookrunners. Standard Bank, Deutsche Bank and Dundee Securities Ltd. were the joint global coordinators. Standard Bank, Deutsche Bank, Dundee Securities, GMP Securities and Mirabaud Securities were the joint placement agents.
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 on the $350 million deal size, 32 million of African Minerals shares would be issuable upon conversion of the bonds. That tally makes up 9.7% of the current number of issued shares.
Closing of the offering and a subscription agreement with Standard Bank, Deutsche Bank and Dundee Securities is subject to repayment of an existing $417.7 million secured loan facility.
Closing is anticipated for Feb. 10.
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
|
| Greenshoe: | $43.75 million
|
| Maturity: | Feb. 10, 2017
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Conversion price: | $10.98 per share (£7.00 converted into dollars)
|
| Conversion premium: | 35.66%
|
| Call option: | At 110 after three years
|
| Bookrunners: | Standard Bank plc and Deutsche Bank AG, London Branch
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 10
|
| Distribution: | Regulation S
|
| Stock symbol: | London: AMI
|
| Stock price: | 5.16p at close Jan. 30
|
| Market capitalization: | £169.34 million
|
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