By Paul A. Harris
St. Louis, Feb. 22 - Frontera Copper Corp. priced a C$25 million issue of non-rated 10% five-year senior unsecured notes at 93.00 to yield 11.9% on Tuesday, according to an informed source.
RBC Capital Markets ran the books. Haywood Securities, Orion Securities and BMO Nesbitt Burns were the co-managers.
The source said that the issue, which was offered publicly via prospectus in Canada, was marketed as a private placement in the United States. However, in the end no bonds were placed with U.S.-based accounts.
Proceeds will be used to fund the balance of initial capital expenditures at the company's wholly owned Piedras Verdes copper project in Sonora, Mexico.
Frontera Copper was incorporated in March 2002 to purchase and bring into production the Piedras Verdes open pit, run-of-mine, heap leach, SXEW copper project in Sonora, Mexico. The company has headquarters in Toronto, Ont.
| Issuer: | Frontera Copper Corp.
|
| Face amount: | C$25 million
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| Proceeds: | C$23.25 million
|
| Maturity: | The latter of either March 15, 2011 or the settlement date plus five years and one day
|
| Security description: | Senior unsecured notes
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| Bookrunner: | RBC Capital Markets
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| Co-managers: | Haywood Securities, Orion Securities, BMO Nesbitt Burns
|
| Coupon: | 10%
|
| Price: | 93.00
|
| Yield: | 11.9%
|
| Trade date: | Feb. 21
|
| Settlement date: | March 7 (expected)
|
| Rating: | Non-rated
|
| Distribution: | Public via prospectus
|
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