Newmont greenshoe fully exercised, lifts 3% three-year convertibles to $517.5 million

By Devika Patel

Knoxville, Tenn., Feb. 3 - Underwriters for Newmont Mining Corp.'s 3% three-year convertible senior notes exercised their over-allotment option in full for $67.5 million more of the convertibles, increasing the size of the issue to $517.5 million, the company said in press release.

As previously reported, the company sold the convertibles at par on Jan. 28 in a registered deal via joint bookrunners Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

The bonds have a conversion premium of 25% and a conversion price of $46.25, which equals a conversion ratio of 21.6216.

The convertibles are non-callable, and there are no puts.

They will have standard dividend and takeover protection.

Proceeds will be used to fund Newmont's acquisition of a 33.3% interest in the Boddington development project in Western Australia that it does not already own from AngloGold Ashanti Ltd.

Newmont is a Denver-based gold producer.

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