Ivanhoe talks $500 million five-year convertible notes to yield 2.25%-2.75%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., March 11 – Ivanhoe Mines Ltd. plans to price $500 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Citigroup Global Markets Inc. and BMO Capital Markets Corp. are the bookrunner for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are non-callable until April 22, 2024 and then subject to a 130% hurdle.

They will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes.

Ivanhoe Mines is a Vancouver, B.C.-based mining company active in Southern Africa.

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