By Kenneth Lim
Boston, Aug. 24 - Canada's Taseko Mines Ltd. on Thursday priced $30 million of five-year convertible unsubordinated unsecured bonds at a coupon of 7.125% and an initial conversion premium of 40%.
The convertibles were offered at par, and will be redeemed at 101% of the principal at maturity. HVB Corporates and Markets was the bookrunner of the Regulation S deal.
The convertibles have an initial conversion price of $3.35 per share, equivalent to C$3.726. Taseko stock closed at C$2.65 on Thursday before the deal priced.
The convertibles are non-callable for the first two years, after which they may be called subject to a 150% price hurdle. There is a put in the third year.
Vancouver, B.C.-based Taseko is a mining exploration, development and production company with assets in British Columbia. It said the proceeds of the offering will be used for further investments in the company's producing assets.
| Issuer: | Taseko Mines Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunner: | HVB Corporates and Markets
|
| Amount: | $30 million
|
| Maturity: | Five years
|
| Coupon: | 7.125%
|
| Price: | Par
|
| Redemption price: | 101%
|
| Conversion premium: | 40%
|
| Conversion price: | $3.35
|
| Conversion ratio: | 298.5075
|
| Call protection: | Non-callable 2 years, thereafter callable subject to 150% threshold
|
| Puts: | Year 3
|
| Pricing date: | Aug. 24 after the close
|
| Settlement date: | Aug. 29
|
| Distribution: | Reg. S
|
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