Western Areas extends exchange offer for 8% convertibles to Friday

By Jennifer Chiou

New York, Oct. 21 - Western Areas NL announced the extension of its offer to exchange its A$208.5 million of 8% convertible bonds due July 2012 to 12:30 p.m. ET on Oct. 22.

The company is offering new 6.375% convertible bonds due July 2014 in the exchange that had been set to end at 9 a.m. ET on Thursday.

As already reported, 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%.

Settlement will occur on Nov. 5.

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

Macquarie Capital Advisers Ltd. (852 3922 2095) and UBS AG, Australia Branch (852 29718140 or 44 207 567 8678) are the dealer managers. The Bank of New York Mellon is the exchange agent (44 207 964 4958).

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

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