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Detour Gold extends consent solicitation for 5.5% convertibles
By Jennifer Chiou
New York, June 27 - Detour Gold Corp. announced the extension of its consent solicitation to amend the indenture governing the company's $250 million of 5.5% senior convertible notes due Nov. 30, 2017 to 5 p.m. ET on July 12.
The previously announced deadline was 5 p.m. ET on June 26.
As announced, the company is soliciting consents for amendments that would provide the company with greater financial flexibility. Specifically, the amendments would permit Detour Gold to obtain an up to C$100 million secured revolving credit facility to be used for working capital and to expand the company's debt to include a broader range of instruments, including commercial letters of credit, and permit those instruments to be collateralized by assets other than cash.
The proposed amendments require the consent of holders of record as of 5 p.m. ET on June 5 representing two-thirds of the principal amount of the outstanding convertibles.
If the amendments pass, the company will pay a consent fee of 50 basis points, equivalent to $5.00 per $1,000 principal amount of convertibles, to holders who consent to the amendments by the expiration date.
Detour Gold previously said that it is also a party to a second trust indenture governing $175 million of 5.5% senior convertible notes due Nov. 30, 2017 and a third indenture governing $75 million of 5.5% class A senior convertible notes due Nov. 30, 2017. The company said at the time that the registered holder of both of those note series has consented to proposed amendments that are identical to those in the consent solicitation, with these amendments becoming effective upon the successful completion of the consent solicitation.
The gold exploration and development company is based in Toronto. It launched the offer on May 31.
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