By Abigail W. Adams
Portland, Me., March 12 – Ivanhoe Mines Ltd. priced $500 million of five-year convertible notes after the market close on Thursday at par with a coupon of 2.5% and an initial conversion premium of 37.5%, according to a company news release.
Pricing came at the midpoint of talk for a coupon of 2.25% to 2.75% and at the rich end of talk for 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.
Net proceeds are expected to be $489 million.
Proceeds will be used for general corporate purposes.
Ivanhoe Mines is a Vancouver, B.C.-based mining company active in Southern Africa.
Issuer: | Ivanhoe Mines Ltd.
|
Securities: | Convertible senior notes
|
Amount: | $500 million
|
Greenshoe: | $75 million
|
Maturity: | April 15, 2026
|
Bookrunners: | Citigroup Global Markets Inc. and BMO Capital Markets Corp.
|
Coupon: | 2.5%
|
Price: | Par
|
Yield: | 2.5%
|
Conversion premium: | 37.5%
|
Conversion price: | $7.43 (equivalent to C$9.31)
|
Conversion rate: | 134.5682
|
Call options: | Non-callable until April 22, 2024 and then subject to a 130% hurdle
|
Put options: | None
|
Pricing date: | March 11
|
Settlement date: | March 17
|
Distribution: | Rule 144A
|
Talk: | Coupon of 2.25% to 2.75% and initial conversion premium of 32.5% to 37.5%
|
Stock symbol: | TSX: IVN
|
Stock price: | C$6.77
|
Market capitalization: | C$8.16 billion
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.