Western Areas to issue 6.375% convertibles in swap for 8% convertibles

By Susanna Moon

Chicago, Oct. 20 - Western Areas NL said bondholders may exchange the A$208.5 million outstanding 8% convertible bonds due July 2012 into new 6.375% convertible bonds due July 2014.

The exchange offer is for A$100 million to A$110 million face value of the 8% bonds, with a minimum tender requirement of A$100 million.

The initial conversion price on the 6.375% bonds will be A$7.7125, representing a conversion premium of 25% over the last close of the shares on the Australia Stock Exchange on Oct. 20.

Each A$250,000 principal amount of bonds tendered will be based on the exchange ratio of 107%.

The offer ends at 9 a.m. ET on Oct. 21.

Settlement will occur on Nov. 5.

Western said the purpose of the offer is to extend the maturity of a portion of the company's existing debt.

Macquarie Capital Advisers Ltd. and UBS AG, Australia Branch are the dealer managers.

Western Areas is a Perth, Australia, nickel mining and exploration company.

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