Royal Gold greenshoe exercised, ups 2.875% convertibles by $45 million

By Tali David

Minneapolis, June 20 - Royal Gold Inc. said the over-allotment option for its offering of 2.875% convertible senior notes due 2019 was exercised in full, increasing the offering by $45 million.

As previously reported, the company priced $325 million of the seven-year convertibles on June 14. The total issue size is now $370 million, according to an 8-K filing with the Securities and Exchange Commission.

The registered, off-the-shelf offering was sold with a 35% initial conversion premium via bookrunner Goldman Sachs & Co. and lead managers HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc.

Proceeds will be used to repay the company's term loan facility, which will be terminated. Remaining proceeds will be used for general corporate purposes, including future acquisitions.

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

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