E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 7/28/2009 in the Prospect News PIPE Daily and Prospect News Private Placement Daily.

New Issue: Northern Star completes C$675,000 tranche of subscription receipts sale

By Devika Patel

Knoxville, Tenn., July 28 - Northern Star Mining Corp. said it has settled a C$675,000 second and final tranche of a private placement of subscription receipts, bringing the size of the deal to C$23.21 million.

The deal priced for C$20 million on July 7 and was increased to approximately C$25 million on July 14. The company raised C$22.54 million in the first tranche on Friday.

The company sold a total of 37,993,000 unit subscription receipts at C$0.50 apiece for C$19 million and 7,528,497 flow-through subscription receipts at C$0.56 apiece for C$4.22 million.

Each unit subscription receipt will automatically convert into one unit of one common share and one half-share warrant. Each whole warrant is exercisable at C$0.70 for three years.

The warrants may expire sooner if the volume-weighted average price of the company's shares exceeds C$1.10 for 15 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.

Each flow-through subscription receipt will automatically convert into one flow-through common share.

The deal was conducted by a syndicate of agents led by Casimir Capital LP.

Proceeds will be placed in escrow until the company completes its planned refinancing of the $42 million senior secured notes that were sold to Computershare Trust Co. on Aug. 13, 2008. The subscription receipts will convert when the escrowed funds are released.

If the escrow release conditions are not satisfied by Aug. 31, the full amount of the financing, along with any accrued interest, will be returned to the purchasers.

Upon completion of the financing, the company will prepay up to C$15 million of its senior secured notes from the proceeds. The balance of the proceeds will be used to fund further exploration of the company's mineral resource properties, capital expenditures and for general working capital purposes.

Vancouver, B.C.-based Northern Star is a development/advanced exploration-stage company engaged in the acquisition, exploration and development of mineral properties in Quebec.

Issuer:Northern Star Mining Corp.
Issue:Subscription receipts convertible into units of one common share and one half-share warrant; flow-through shares
Amount:C$23,212,458
Pricing date:July 7
Upsized:July 14
Settlement date:July 24 (for C$22,537,458), July 28 (for C$675,000)
Stock symbol:TSX Venture: NSM
Stock price:C$0.60 at close on July 6
Market capitalization:C$49.8 million
Unit receipts
Amount:C$18,996,500
Receipts:37,993,000
Price:C$0.50
Warrants:One half-share warrant per unit upon conversion
Warrant expiration:Three years
Warrant strike price:C$0.70
Flow-through receipts
Amount:C$4,215,958
Receipts:7,528,497
Price:C$0.56
Warrants:No

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.