By Stephanie N. Rotondo
Seattle, Nov. 3 – Sirius Minerals plc and its subsidiaries priced $400 million of 8.5% seven-year guaranteed convertible bonds at par with a 25% initial conversion premium on Thursday, the company said in a press release.
Price talk was for a yield of 8% to 8.5% and an initial conversion premium of 25% to 30%.
J.P. Morgan Cazenove is the bookrunner.
The bonds are convertible into ordinary shares at an initial conversion price of 30.76 cents.
The convertible debt becomes redeemable on or after Dec. 19, 2018 if the ordinary shares underlying the bonds reach a 175% price hurdle. The paper can also be redeemed on or after Dec. 19, 2021, is the stock hits a 150% price hurdle.
The company can also redeem the issue if 85% or more of the principal amount has been previously converted or repurchased and cancelled.
Concurrently with the convertibles offering, the company raised £370 million via an equity placement. The company also said it had inked a $300 million royalty financing agreement with a subsidiary of Hancock Prospecting Pty Ltd.
All proceeds will be used to fund the $1.2 billion first stage of financing to begin the construction of the North Yorkshire polyhalite project.
Sirius Minerals is a North Yorkshire, England-based fertilizer development company.
| Issuer: | Sirius Minerals Finance Ltd.
|
| Guarantor: | Sirius Minerals plc
|
| Securities: | Guaranteed convertible bonds
|
| Amount: | $400 million
|
| Maturity: | Nov. 28, 2023
|
| Bookrunner: | J.P. Morgan Cazenove
|
| Coupon: | 8.5%
|
| Price: | Par of $1,000
|
| Yield: | 8.5%
|
| Conversion premium: | 25%
|
| Conversion price: | 30.76 cents per share
|
| Contingent redemption: | Beginning Dec. 19, 2018 if underlying shares reach 175% price hurdle; beginning Dec. 19, 2021 if underlying shares reach 150% price hurdle
|
| Pricing date: | Nov. 3
|
| Settlement date: | Nov. 28
|
| Talk: | 8% to 8.5%, up 25% to 30%
|
| Stock symbol: | London: SXX
|
| Stock price: | 20p (price of concurrent equity placement)
|
| Market capitalization: | £583.49 million
|
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