By Susanna Moon
Chicago, May 16 - African Minerals Ltd. said it issued another $50 million of 8.5% five-year convertible bonds on Wednesday at the same terms of those issued on Feb. 10, bringing the total deal size to $400 million.
China Railway Materials Co. Ltd completed its subscription for the $50 million of convertibles after receiving the needed regulatory approval, according to a company press release.
The company announced some of the terms of the issue on Jan. 30, and more information was released the following day.
The $350 million Regulation S issue had a $43.75 million greenshoe.
As previously noted, the conversion price was 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 Jan. 30.
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 were 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 original deal size, 32 million of African Minerals shares would be issuable upon conversion of the bonds, or 9.7% of the number of issued shares in January.
Closing of the offering and a subscription agreement with Standard Bank, Deutsche Bank and Dundee Securities was subject to repayment of an existing $417.7 million secured loan facility.
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: | $400 million, up from $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 for $350 million, May 15 for $50 million
|
| Distribution: | Regulation S
|
| Stock symbol: | London: AMI
|
| Stock price: | 5.16p at close Jan. 30
|
| Market capitalization: | £169.34 million
|
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