By Cristal Cody
Prospect News, May 16 - Allied Nevada Gold Corp. sold C$400 million of seven-year senior notes (B3/B/) at par to yield 8¾% in a bought deal on Wednesday, syndicate sources said.
The notes due June 1, 2019 will be offered in Canada on a private placement basis and are Rule 144A eligible.
The issue is expected to be allocated late Thursday or on Friday, one source said.
Scotia Capital Inc. and GMP Securities LP were the underwriters.
The notes are guaranteed by Allied Nevada Gold's wholly owned domestic restricted subsidiaries.
Proceeds will be used to fund the company's expansion of its Hycroft Mine in Nevada and for general corporate purposes.
Along with the offering, Allied Nevada Gold simultaneously entered with Scotia Capital into a cross-currency interest rate swap that guarantees a U.S. dollar-denominated $400.4 million at an effective annual interest rate of 8 3/8%.
Reno, Nev.-based Allied Nevada Gold is a gold mining and exploration company.
| Issuer: | Allied Nevada Gold Corp.
|
| Guarantors: | Allied Nevada Gold's wholly owned domestic restricted subsidiaries
|
| Amount: | C$400 million
|
| Maturity: | June 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Scotia Capital Inc., GMP Securities LP
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Call feature: | After four years at fixed call schedule; redeemable at any time at Canada Yield Price plus par and accrued and unpaid interest
|
| Change-of-control put: | 101%
|
| Pricing date: | May 16
|
| Settlement date: | May 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A, Canada private placement
|
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