Western Areas' exchange offer for its 8% convertibles oversubscribed

By Angela McDaniels

Tacoma, Wash., Oct. 25 - Western Areas NL said the exchange offer for its A$208.5 million of 8% convertible bonds due July 2012 was significantly oversubscribed when the offer period closed on Oct. 22.

The company is offering new 6.375% convertible bonds due July 2, 2014 in exchange for roughly A$100 million to A$110 million of the 8% convertibles.

The completion of the offer is subject to the receipt of electronic confirmations through the clearing systems. The amount of new convertibles to be issued is expected to be A$110.75 million, but the exact amount of the 8% convertibles accepted for exchange will be finalized once those electronic confirmations have been received.

The deadline for the receipt of electronic confirmations is Oct. 27.

The principal amount of 6.375% convertibles to be exchanged for each A$250,000 principal amount of 8% convertibles will be based on an exchange ratio of 107%.

The initial conversion price on the 6.375% convertibles will be A$7.7125, which is a premium of 25% over the closing share price of A$6.17 (Australia: WSA) on Oct. 20.

The new convertibles will be callable beginning July 20, 2012 if their parity value - based on the value of the Western Areas shares the bonds would convert into - is at least 130% of par.

Settlement will occur on Nov. 5.

The offer began Oct. 20 and is meant 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-based nickel sulphide mining and exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.