Placer Dome greenshoe exercised, raising convertibles to $230 million

New York, Oct. 10 - Placer Dome Inc. said underwriters of its offering of unsecured senior convertible debentures exercised the $30 million over-allotment option in full, raising the size of the deal to $230 million.

The Vancouver, B.C. mining company originally sold $200 million of the securities after the market closed on Oct. 7 to yield 2.75% with a 55% initial conversion premium.

Bookrunners for the Rule 144A offering were Citigroup, JPMorgan and Morgan Stanley.

Proceeds, along with those from a $300 million debenture sale, will 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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