By Paul A. Harris
Portland, Ore., March 17 - AuRico Gold Inc. priced an upsized $315 million issue of 7¾% six-year senior secured second-lien notes (B3/B/) at 96.524 to yield 8½% on Monday, according to a syndicate source.
The deal was upsized from $300 million.
The yield printed at the tight end of the 8½% to 8¾% yield talk. The reoffer price came in line with discount talk of 3 to 4 points OID.
The deal was restructured, with the maturity of the notes reduced to six years from eight years. Also the ranking on the capital structure is improved to senior secured second-lien status, whereas the deal had previously been in the market as a senior unsecured note.
Joint global coordinator and joint bookrunner RBC Capital Markets Corp. will bill and deliver. Credit Suisse Securities (USA) LLC was also a joint global coordinator and joint bookrunner. Scotia Capital was a joint bookrunner.
The Toronto-based gold exploration and mining company plans to use the proceeds to repurchase convertible notes via a tender offer, to repay bank debt and for general corporate purposes, which may include funding capital expenditures to support organic growth.
| Issuer: | AuRico Gold Inc.
|
| Face amount: | $315 million, increased from $300 million
|
| Proceeds: | $304 million
|
| Maturity: | April 1, 2020 (maturity decreased to six years from eight years)
|
| Securities: | Senior secured second-lien notes (Capital structure improved from senior unsecured)
|
| Global coordinators: | RBC Capital Markets (bill and deliver), Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | RBC, Credit Suisse, Scotia Capital
|
| Co-managers: | CIBC World Markets, TD Securities
|
| Coupon: | 7¾%
|
| Price: | 96.524
|
| Yield: | 8½%
|
| Spread: | 658 bps
|
| First call: | April 1, 2017 at 103.875
|
| Equity clawback: | 35% at 107.75 until April 1, 2017
|
| Trade date: | March 17
|
| Settlement date: | March 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% to 8¾% with 3 to 4 points OID
|
| Marketing: | Roadshow
|
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