Talk revised on planned Royal Gold $325 million seven-year convertibles to 2.75%-3%, up 35%

By Rebecca Melvin

New York, June 14 - Price talk on Royal Gold Inc.'s planned $325 million of seven-year convertible senior notes was revised during marketing Thursday to 2.75% to 3% for the coupon and 35% for the initial conversion premium, according to a syndicate source.

Initially the registered, off-the-shelf deal, which was expected to price after the market close Thursday, was talked at a higher 3.125% to 3.625% coupon and a premium range of 30% to 35%.

As previously reported, the offering has a $45 million greenshoe and was being sold via bookrunner Goldman Sachs & Co. with lead managers HSBC Securities (USA) Inc. and Scotia 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.

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