Placer Dome $200 million convertible talked to yield 2.75-3.25%, up 50-55%

By Ronda Fears

Nashville, Oct. 7 - Placer Dome Inc. launched $200 million of 20-year convertible notes talked to yield 2.75% to 3.25% with a 50% to 55% initial conversion premium. Pricing is slated for after the close Tuesday.

Citigroup, JPMorgan and Morgan Stanley are joint lead managers of the Rule 144Adeal.

The notes will be non-callable for seven years with puts in years seven and 10. There is a 120% contingent conversion trigger.

Holders will have dividend protection by way of a conversion ratio adjustment.

The issue is expected to be rated BBB+ by Standard & Poor's and Baa2 by Moody's.

There is a $30 million greenshoe available.

Placer Dome also is selling $300 million of 32-year unsecured senior debentures in a Rule 144A placement.

The Vancouver, B.C.-based mining concern said proceeds would be used to refinance costs associated with its acquisition of East African Gold Mines in July and to fund the expansion of its North Mara mine.

Any remaining proceeds will be used to fund capital expenditures and development projects, and general corporate purposes.

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