First Quantum 6% convertibles lifted to $500 million via greenshoe

By Angela McDaniels

Tacoma, Wash., May 28 - First Quantum Minerals Ltd. said the underwriters of its 6% convertible bonds due June 19, 2014 exercised their $50 million over-allotment option in full, raising the issue size to $500 million.

The company priced $450 million of the convertibles with a 35% initial conversion premium on Wednesday. The conversion price is $56.39.

As previously reported, the deal was increased from a planned $350 million and came at the rich end of talk that had put the yield at 6% to 6.5% and the initial conversion premium at 30% to 35%.

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. The convertibles were not sold in Canada.

The convertibles are non-callable until July 3, 2012 and provisionally callable after that subject to a 140% price hurdle.

First Quantum is a Vancouver, B.C.-based mining and metals company.

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