By Wendy Van Sickle
Columbus, Ohio, Feb. 8 – Pretium Resources Inc. priced $90 million of 2.25% convertible senior subordinated notes due 2022 at par on Wednesday, according to a company news release.
The deal has a greenshoe for up to an additional $10 million of notes.
The initial conversion rate will be 62.5 common shares per $1,000 principal amount of notes, for an initial conversion price of $16.00 per common share.
The initial conversion rate is a premium of about 32.56% over the shares’ Wednesday closing price of $12.07 and is subject to adjustment in certain events.
The notes will be redeemable by Pretium in certain circumstances, and holders of the notes may require Pretium to repurchase them in certain circumstances.
Proceeds are intended for working capital during startup of the Brucejack mine and for general corporate purposes.
The deal is expected to close on Feb. 14.
Vancouver, B.C.-based Pretium owns and develops gold, silver and copper mineral interests.
| Issuer: | Pretium Resources Inc.
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| Securities: | Convertible senior subordinated notes
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| Amount: | $90 million
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| Greenshoe: | $10 million
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| Maturity: | 2022
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| Coupon: | 2.25%
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| Price: | Par
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| Yield: | 2.25%
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| Initial conversion price: | $16.00
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| Call: | Callable in certain circumstances
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| Put: | Holders may require repurchase of notes in certain circumstances
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 14
|
| Stock symbol: | NYSE: PVG
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| Stock price: | $12.07 at close Feb. 8
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