By Susanna Moon
Chicago, Feb. 19 - Lappland Goldminers AB said its board of directors decided to issue a convertible bond loan to the company's shareholders for SEK 122.21 million.
For every 75 old shares, investors may subscribe to the new issue for 10 convertibles at a nominal value of SEK 11.00 each.
The convertibles are due on Dec. 30, 2013 and carry an annual interest rate of 90-day Stibor plus 600 basis points, capped at 10% during each interest period. Interest will be payable quarterly.
The notes are convertible annually at SEK 11.00 from Jan. 1 through Jan. 15, May 1 through May 15 and Sept. 1 through Sept. 15, beginning Jan. 1, 2011.
Lappland said it plans to list the convertibles on the Nasdaq OMX First North.
The record day for the shareholders' right to participate is March 31. The subscription rights will be traded on Nasdaq OMX First North from April 7 through April 16.
The issue requires shareholder approval at a meeting to be held on March 16.
The issue is guaranteed by a consortium of some of largest shareholders of the company, according to a company news release.
Proceeds will be used to continue developing the operations, including the completion of the feasibility study for Faboliden, and carrying out the drilling programs at Ersmarksberget and Pahtavaara.
Lappland is a gold exploration company based in Lycksele, Sweden.
Issuer: | Lappland Goldminers AB
|
Issue: | Convertible bond loan
|
Amount: | SEK 122,213,674
|
Maturity: | Dec. 30, 2013
|
Coupon: | 90-day Stibor plus 600 bps, capped at 10%
|
Price: | Par
|
Yield: | 90-day Stibor plus 600 bps, capped at 10%
|
Conversion price: | SEK 11.00
|
Pricing date: | Feb. 19
|
© 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.