First Quantum holders convert nearly all 6% notes in sweetener offer

By Susanna Moon

Chicago, July 29 - First Quantum Minerals Ltd. said holders converted $499.9 million, or 99.98%, of its $500 million 6% convertible bonds due 2014 under the cash incentive offer that ended at 12:30 p.m. ET on July 28.

The company offered $8,088.91 in cash and a $1,410.68 conversion price adjustment payment for each $100,000 principal amount of bonds.

First Quantum said on July 27 that it was offering a cash incentive payment to holders who convert their bonds. The acceptance period for the offer began July 27.

The conversion price is $55.82. The company's stock closed at $148.78 (Pink Sheets: FQVLF) on July 26.

The company said it planned to redeem the bonds that remain outstanding if at least 85% of the original principal amount of the bonds was converted after the incentive invitation.

"The accelerated conversion of the bonds will reduce First Quantum's net debt and increase its equity, thereby providing the company with further financial flexibility," according to a company press release.

Nomura International plc is the manager for the incentive invitation.

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

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