By Ronda Fears
Nashville, Oct. 8 - Placer Dome Inc. sold $200 million of 20-year convertible notes at par to yield 2.75% with a 55% initial conversion premium via joint bookrunners Citigroup, JPMorgan and Morgan Stanley.
The issue sold at the aggressive end of price talk for a yield of 2.75% to 3.25% and 50% to 55% initial conversion premium
Holders will have dividend protection by way of a conversion ratio adjustment.
Placer Dome also sold $300 million of 6.45% unsecured senior debentures maturing in 2035.
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.
Terms of the new deal are:
Issuer: Placer Dome Inc.
| Issue: | Convertible senior unsecured notes
|
| Lead managers: | | Citigroup, JPMorgan and Morgan Stanley
|
| Amount | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | October 2023
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 55%
|
| Conversion price: | $20.925
|
| Conversion ratio: | 47.7897
|
| Call: | Non-callable for 7 years
|
| Put: | In years 7 and 10
|
| Contingent conversion: | 120%
|
| Price talk: | 2.75-3.25%, up 50-55%
|
| Expected ratings: | Moody's: Baa2
|
| S&P: BBB+
|
| Pricing date: | Oct. 7, after the close
|
| Settlement: | Oct. 10
|
| Distribution: | Rule 144A
|
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