By Rebecca Melvin
New York, Jan. 31 - London Mining (Jersey) plc issued $110 million of five-year convertible bonds on behalf of parent London Mining plc at par to yield 8% with an initial conversion premium of 38% over the volume weighted average price of shares between launch and pricing, according to a news release.
The bonds came at the talked price point for the coupon and at the rich end of 32% to 38% premium talk.
Liberum Capital Ltd. and JPMorgan were the joint bookrunners for the offering, which is non-callable for three years and then provisionally callable subject to a 130% price hurdle, or if 15% or less of the bonds remain outstanding.
Proceeds are intended to be used primarily to fund the company's Marampa (Sierra Leone) iron ore development project.
The deal is expected to close Feb. 15.
London Mining is a London-based iron ore mining company with assets in Sierra Leone, Greenland, Saudi Arabia, and China. It has listings in both London and Oslo under the symbol LOND.
| Issuer: | London Mining (Jersey) plc
|
| Guarantor: | London Mining plc
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million
|
| Maturity: | 2016
|
| Bookrunners: | Liberum Capital Ltd., JPMorgan
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion premium: | 38%
|
| Call: | Non-callable for three years, then provisionally callable subject to 130% hurdle
|
| Puts: | No puts
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 15
|
| Stock symbol: | London, Oslo: LOND
|
| Market capitalization: | £413.09 million
|
| Talk: | 8% yield, up 32% to 38%
|
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