By Ronda Fears
Nashville, Sept. 24 - Lonmin plc sold $215.8 million of five-year convertible bonds at par to yield 3.75% with a 30% initial conversion premium, via joint bookrunners Cazenove & Co. Ltd. and Morgan Stanley.
The offering priced at the rich end of talk, which put the yield at 3.75% to 4% with a 25% to 30% initial conversion premium.
The gold mining concern company plans to use proceeds for general corporate purposes and to reduce other debt.
Terms of the new deal are:
Issuer: Lonmin plc
| Issue: | Convertible unsubordinated unsecured bonds
|
| Lead managers: | | Cazenove & Co. Ltd. and Morgan Stanley
|
| Amount | $215.8 million
|
| Maturity: | Sept. 30, 2008
|
| Coupon: | 3.75%
|
| Price: | par
|
| Redemption price: | par
|
| Yield: | 3.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $20.4023
|
| Conversion ratio: | 49.0141
|
| Call: | Non-callable for 3 years, then with 130% hurdle
|
| Price talk: | 3.75-4.0%, up 25-30%
|
| Pricing Date: | Sept. 23
|
| Settlement: | Sept. 30
|
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