By Rebecca Melvin
Princeton, N.J., Dec. 1 - Australia's Perseverance Corp. Ltd. priced A$30 million seven-year convertibles at par to yield 6.75% with an initial conversion premium of 30%, according to a syndicate source.
The convertible subordinated notes priced at the cheap end of talk, which was for a yield of 6.25% to 6.75% and an initial conversion premium of 30% to 35%.
Barclays Capital was the bookrunner.
There is a A$7 million over-allotment option.
The deal priced Nov. 30 and will close on Dec. 20.
Perseverance said that most of the convertible note subscribers were likely to be European institutional investors and that it intends to list the bonds on the Singapore Stock Exchange.
Proceeds from the offering will be used to fund underground development and other capital projects at its principal mining operation, acceleration of its exploration program, repayment of part of its existing debt, and for general corporate purposes.
Perseverance, based in Fosterville, Victoria, Australia, operates the Fosterville gold mining project.
| Issuer: | Perseverance Corp. Ltd.
|
| Issue: | Convertible subordinated notes
|
| Amount: | A$30 million
|
| Bookrunner: | Barclays Capital
|
| Greenshoe: | A$7 million
|
| Maturity: | Dec. 12, 2012
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Conversion premium: | 30%
|
| Conversion price: | A$0.442
|
| Calls: | Non-callable for four years
|
| Puts: | In year five
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 20
|
| Distribution: | Regulation S
|
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