New Issue: Newmont prices $1 billion convertibles: seven-years at 1.25%, 10-years 1.625%, both up 15%

By Evan Weinberger

New York, July 12 - Newmont Mining Corp. priced $1 billion in convertible senior unsecured notes divided into two tranches on Wednesday after market close.

The first tranche of $500 million due July 15, 2014 has a coupon of 1.25% and an initial conversion premium of 15%. It came in at the rich end of talk, which had been for a coupon of 1.25% to 1.75% with an initial conversion premium of 10% to 15%.

The second tranche due July 15, 2017 has a coupon of 1.625% and an initial conversion premium of 15%. It also came in at the rich end of talk, which had been for a coupon of 1.625% to 2.125% and an initial conversion premium of 10% to 15%.

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

There is a $75 million over-allotment option for both tranches.

Both tranches have a conversion ratio of 21.6417 and a conversion price of $46.21.

There are no calls or puts for either tranche.

The convertibles are guaranteed by subsidiary Newmont USA Ltd. The guarantees will be released if Newmont USA ceases to guarantee more than $75 million of other debt of Newmont.

The Denver-based mining company said 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.

Issuer: Newmont Mining Corp.

Issue: Convertible senior unsecured notes

Amount: $1 billion

Call: No

Put: No

Pricing date: July 11

Settlement date: July 17

Bookrunners: Citigroup, JP Morgan

Distribution: Rule 144A

2014 Tranche

Amount: $500 million

Greenshoe: $75 million

Maturity: July 15, 2014

Coupon: 1.25%

Price: Par

Yield: 1.25%

Conversion premium: 15%

Conversion ratio: 21.6417

Conversion price: $46.21

Talk: 1.25%-1.75% coupon, 10%-15% conversion premium

2017 Tranche

Amount: $500 million

Greenshoe: $75 million

Maturity: July 15, 2017

Coupon: 1.625%

Price: Par

Yield: 1.625%

Conversion premium: 15%

Conversion ratio: 21.6417

Conversion price: $46.21

Talk: 1.625%- 2.125% coupon, 10% to 15% initial conversion premium

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