By Rebecca Melvin
New York, May 27 - First Quantum Minerals Ltd. priced an upsized $450 million of five-year convertible bonds to yield 6% with a 35% initial conversion premium on Wednesday.
The deal was increased from a planned $350 million and came at the rich end of talk which had put the yield at 6% to 6.5% and the initial conversion premium at 30% to 35%.
There is a $50 million greenshoe.
The deal was sold under Regulation S in the United Kingdom and other jurisdictions in the European Economic Area.
Joint bookrunners were Nomura International and Morgan Stanley, with RBC Capital Markets acting as co-manager. It will not be sold in Canada.
Proceeds will be used for longer-term debt capital to strengthen the company's financial position by adding liquidity and giving it the option to repay or renegotiate short-term debt, additional financial resources to enable it to continue to undertake organic growth initiatives and funding flexibility if suitable acquisition opportunities are identified.
The convertibles are non-callable for three years until July 3 2012, and provisionally callable after that subject to a 140% price hurdle.
Closing is subject to regulatory approvals, including the approval of the Toronto Stock Exchange. It is intended to list the bonds on the Professional Securities Market of the London Stock Exchange.
First Quantum is a Vancouver, B.C.-based mining and metals company.
| Issuer: | First Quantum Minerals Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $450 million, upsized from $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | June 19, 2014
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 30%
|
| Conversion price: | $56.39
|
| Price talk: | 6%-6.5%, up 30%-35%
|
| Call: | Non callable for three years until June 3, 2012 and then provisionally callable subject to a hurdle of 140%
|
| Bookrunners: | Nomura International and Morgan Stanley
|
| Co-manager: | RBC
|
| Pricing date: | May 27
|
| Settlement: | June 18
|
| Distribution: | Regulation S
|
| Stock symbol: | TSX: FM; LSE: FQM
|
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