Silver Standard to price $120 million 20-year convertibles

By Rebecca Melvin

New York, Feb. 20 - Silver Standard Resources Inc. plans to price $120 million of 20-year convertibles, according to company news release.

The offering has a 30-day option to purchase up to an additional $18 million principal amount of the notes, which are senior unsecured convertibles due February 2028.

Final pricing was not available by press time. The offering was expected to close, subject to market conditions and satisfaction of closing requirements and the receipt of any required regulatory approvals, on or about Feb. 26.

The Rule 144A and Regulation S notes will be callable in five years and convertible into Silver Standard common shares at a fixed conversion rate, reflecting an effective conversion price higher than the closing share price on the day the offering is priced.

Any conversion right will be contingent on Silver Standard's common shares trading at a premium to that effective conversion price or upon the occurrence of certain other specified conversion events.

Part of net proceeds will be used to finance a portion of the development costs of its Pirquitas Project, and the balance will be for exploration of its other properties, for working capital and general corporate purposes.

The Vancouver, B.C.-based silver mining company has shares listed on the Nasdaq stock market under ticker symbol "SSRI."

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