Royal Gold plans $325 million seven-year convertibles to yield 3.125%-3.625%, up 30%-35%

By Rebecca Melvin

New York, June 13 - Royal Gold Inc. plans to price $325 million of seven-year convertible senior notes after the market close Thursday that were talked to yield 3.125% to 3.625% with an initial conversion premium of 30% to 35%, according to a market source.

The registered, off-the-shelf offering has a $45 million greenshoe and is being sold via bookrunner Goldman Sachs & Co. with lead managers HSBC Securities (USA) Inc. and Scotiabank Capital (USA) Inc.

The notes are non-callable for three years and then are provisionally callable if the stock price exceeds 130% of conversion.

There is also takeover and dividend protection.

Proceeds will be used to repay amounts outstanding and to terminate a term loan facility. Remaining proceeds will be used for general corporate purposes, including acquisitions of additional royalty interests.

Royal Gold is a Denver-based precious metals royalties acquisitions and management company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.