North American Palladium plans up to C$75 million of 7.5% convertibles

By Rebecca Melvin

New York, Jan. 13 - North American Palladium Ltd. said it plans to price securities in two tranches including a tranche of C$30 million of 7.5% five-year convertible debentures and a tranche of between C$20 million and C$45 million of 7.5% five-year convertibles and warrants expiring three years from their issue date.

The tranche two warrants will represent the right to purchase an aggregate number of common shares of the company stock equal to 33% of the number of common shares into which the debentures are convertible at an exercise price equal to 120% of the conversion price of the tranche two debentures.

The securities, which will be registered in the United States and also offered in Canada under a short-form base shelf prospectus, will be sold via Edgecrest Capital Corp. as lead placement agent and sole bookrunner for a syndicate of underwriters.

The company also announced it has secured a non-binding commitment to purchase C$40 million of the securities being offered including C$20 million of each tranche from Crede CG III, Ltd., a wholly owned subsidiary of U.S.-based Crede Capital Group, LLC.

Tranche one is expected close on Jan. 23. In the event that regulatory approval is not obtained in connection with tranche two, such approval will be sought at a meeting to be held March 18, with closing of tranche two anticipated March 27.

Proceeds from the offering are expected to be used for general corporate purposes.

The securities will not be listed.

Toronto-based North American Palladium is a platinum group metals exploration company.

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