Newmont $1 billion convertibles: seven-years talked at 1.25%-1.75%; 10-years 1.625%-2.125%; both up 10%-15%

By Evan Weinberger

New York, July 11 - Newmont Mining Corp. plans to offer $1 billion in convertible senior notes, the company announced Tuesday after market close.

The convertibles were scheduled to price Wednesday after the market close.

The first tranche of $500 million notes due 2014 is talked at a coupon of 1.25% to 1.75% with an initial conversion premium of 10% to 15%.

The second tranche of $500 million notes due 2017 is talked at a coupon of 1.625% to 2.125% with an initial conversion premium of 10% to 15%.

Citigroup and JP Morgan are joint bookrunners of the Rule 144A transaction.

Both tranches are non-callable and have no put options.

The Denver-based mining company said that proceeds would be used to repay borrowings on Newmont's revolving credit facility, to enter into convertible note hedge and warrant transactions and for general corporate purposes.

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