By Devika Patel
Knoxville, Tenn., Aug. 17 - North American Palladium Ltd. announced it will raise $50 million from an offering of four-year 7% convertible notes. There is a $15 million greenshoe.
The notes are convertible into common shares at an initial price of $3.50 per share.
The company may prepay the notes at 110 in the first two years and at 105 after that.
North American Palladium also has a forced conversion option subject to a $5.25 hurdle.
The convertibles are being sold on a best efforts basis via an unnamed agent under Rule 144A in the United States and as a private placement in Canada.
Proceeds will be used for financing exploration and development expenditures at the company's Lac des Iles palladium mine and Sleeping Giant gold mine, funding capital expenditures and working capital requirements for a restart of the Lac des Iles mine and for general corporate purposes.
Toronto-based North American Palladium is a platinum group metals exploration company.
| Issuer: | North American Palladium Ltd.
|
| Issue: | Convertible notes
|
| Amount: | $50 million
|
| Greenshoe: | $15 million
|
| Maturity: | Four years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $3.50
|
| Call: | At 110 in the first two years, then at 105
|
| Provisional call: | Subject to $5.25 hurdle
|
| Pricing date: | Aug. 17
|
| Stock symbol: | Toronto: PDL
|
| Stock price: | C$3.04 at close Aug. 17
|
| Market capitalization: | C$316 million
|
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