Peter Hambro Mining gets bondholder OK to redeem all 7% exchangeables not tendered in offer

By Angela McDaniels

Tacoma, Wash., Sept. 24 - Petropavlovsk plc subsidiary Peter Hambro Mining Group Finance Ltd. said the holders of its $53 million of 7% guaranteed gold equivalent exchangeable bonds due 2012 consented to an amendment to the bonds' transaction document that will allow it to redeem all of the bonds.

The amendment was being solicited in connection with a tender offer that began Sept. 2.

The holders voted to approve the amendment at a meeting on Sept. 24, and the tender offer ended at 11 a.m. ET on Sept. 22.

The company has exercised its call option for the bonds not tendered in the offer. As a result, no bonds will remain outstanding after the settlement date, which is expected to be Oct. 1 for both the tender offer and redemption.

For each $100,000 principal amount of bonds tendered in the offer, the company will pay $109,000, which includes a $5,000 early tender payout for those who tendered by 11 a.m. ET on Sept. 9.

Each tender was considered to be a vote cast in favor of the amendment.

The tender offer was conditioned on the receipt of bondholder approval of the amendment.

As of Sept. 2, holders of 63.4% of the bonds had agreed to the amendment.

J.P. Morgan Cazenove Ltd. (44 20 7588 2828) was the dealer manager. Lucid Issuer Services Ltd. (44 20 7704 0880) was the tender agent.

Petropavlovsk, formerly Peter Hambro Mining plc, is a London-based gold mining company that operates in Russia.

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