Xstrata swaps out 4% convertibles for new listed bonds with lower conversion price

By Angela McDaniels

Seattle, Oct. 12 - Xstrata plc said it will issue $375 million of new 4% guaranteed convertible bonds due 2017 with a lower conversion price in exchange for the cancellation of the 4% guaranteed convertible bonds due 2017 issued in the same amount to a subsidiary of Brookfield Asset Management Inc.

Xstrata has applied to list the new bonds on the Professional Securities Market of London Stock Exchange plc.

The conversion price for the new bonds is £15.27, compared with £17.1315 for the old bonds. The adjustment is being made to reflect events since the bonds were issued, and is in line with the terms of the indenture.

The old bonds were issued in payment for a portion of the 73,115,756 common shares of Falconbridge Ltd. stock, or 19.9% of the common shares then outstanding, that Xstrata purchased from Brookfield in August 2005.

The new bonds will be issued to Trilon International Inc., a wholly owned subsidiary of Brookfield and the current holder of the old bonds. They will be issued by Xstrata Capital Corp. AVV and guaranteed by Xstrata.

The Zug, Switzerland-based mining company has applied to list the new bonds on the Official List of the Financial Services Authority and to trade the new bonds on the Professional Securities Market of London Stock Exchange plc.

© 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.