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Western Areas accepts A$103 million 8% convertibles in exchange offer
By Angela McDaniels
Tacoma, Wash., Oct. 28 - Western Areas NL accepted A$103 million principal amount of bonds in the exchange offer for its A$208.5 million 8% convertible bonds due July 2012, according to a company news release.
The offer period closed on Oct. 22. The company announced on Oct. 25 that the offer was oversubscribed, but the amount of convertibles accepted for exchange could not be finalized until after the receipt of electronic confirmations through the clearing systems. The deadline for the receipt of electronic confirmations was Oct. 27.
As previously reported, holders were offered new 6.375% convertible bonds due July 2, 2014 in exchange for their 8% convertibles. Western Areas planned to accept A$100 million to A$110 million of the existing convertibles.
The amount of new convertibles to be issued is A$110.2 million. The new convertibles are expected to settle on Nov. 5 and begin trading on the Singapore Exchange Ltd. on Nov. 8.
The principal amount of 6.375% convertibles to be exchanged for each A$250,000 principal amount of 8% convertibles is based on an exchange ratio of 107%.
The initial conversion price for the 6.375% convertibles is A$7.7125, which is a premium of 25% over the closing share price of A$6.17 (Australia: WSA) on Oct. 20, when the offer began.
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.
Macquarie Capital Advisers Ltd. (852 3922 2095) and UBS AG, Australia Branch (852 29718140 or 44 207 567 8678) were the dealer managers. The Bank of New York Mellon (44 207 964 4958) was the exchange agent.
Western Areas is a Perth, Australia-based nickel sulphide mining and exploration company.
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