By Kenneth Lim
Boston, June 14 - Canada's New Gold Inc. priced C$55 million of seven-year convertible subordinated debentures on Thursday to yield 5% with an initial conversion premium of 25.5%.
The convertibles were offered at par and have an initial conversion price of C$9.35 per share.
There is an over-allotment option for a further C$5.5 million.
GMP Securities, BMO Nesbitt Burns, Orion Securities, Jennings Capital and Wellington West Capital Markets are the underwriters of the Regulation S offering.
There was a concurrent offering of $220 million of bond-and-warrant units. Each unit comprises a 10% unsecured note due 2017 and 100 10-year common share purchase warrants with a strike price of $15 per share. There is a greenshoe worth $22 million for the unit offering.
New Gold, a Vancouver, B.C.-based copper and gold mining company, said the proceeds of the deals will be used to fund the pre-production development of its New Afton project and to expand the development.
| Issuer: | New Gold Inc.
|
| Issue: | Convertible subordinated debentures
|
| Bookrunners: | GMP Securities, BMO Nesbitt Burns, Orion Securities, Jennings Capital and Wellington West Capital Markets
|
| Amount: | C$55 million
|
| Greenshoe: | C$5.5 million
|
| Maturity: | 2014
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 25.5%
|
| Conversion price: | C$9.35
|
| Conversion ratio: | 106.9547
|
| Pricing date: | June 14
|
| Settlement date: | June 28
|
| Distribution: | Regulation S
|
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