Petropavlovsk cuts conversion price of 4% notes due to dividend payout

By Susanna Moon

Chicago, Aug. 8 - Petropavlovsk plc said the exchange price was revised for Petropavlovsk 2010 Ltd.'s $380 million of 4% convertibles due 2015.

The exchange price was lowered to £12.66 from £12.79 as the result of a dividend of 7p paid to shareholders on July 28. The original exchange price was £12.9345.

The note terms provide for adjustments to the exchange price if a capital distribution is paid or made to shareholders provided that the adjustment would be equal to, or more than, 1% of the exchange price in effect, according to a company press release.

The company's shares closed at 7.035p (London: POG) on Aug. 5.

Petropavlovsk priced the upsized $330 million of five-year convertibles on Jan. 22, 2011 with an initial conversion premium of 32.5% and said on Feb. 4, 2011 that the underwriter had exercised the $50 million over-allotment option in full, increasing the size of the offering to $380 million.

The Regulation S offering was led by bookrunner J.P. Morgan Cazenove, with Citigroup Global Markets as joint lead manager.

Canaccord Adams, ING, Liberum Capital, Raiffeisen Centrobank, SG Corporate & Investment Banking and UniCredit Group were the co-managers.

Petropavlovsk, formerly Peter Hambro Mining plc, is a London-based gold mining company that operates in Russia.

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