Gamco raises further $60 million from Cascade; Avanti, York Pharma take on debt for acquisitions

By Kenneth Lim

Boston, Oct. 3 - Gamco Investors, Inc. said it closed a $60 million private placement of convertibles to Cascade Investment LLC.

Meanwhile, Avanti Mining Inc. announced a bridge loan that will help it to acquire a mine in British Columbia.

York Pharma plc raised about $51.2 million of debt and convertible notes that will also be used for acquisition purposes.

Gamco raises more from Cascade

Gamco Investors said it placed $60 million of 6.5% convertible promissory notes due Oct. 2, 2018 with Cascade Investment.

The notes are initially convertible into Gamco common stock at $70 per share. Gamco common stock (NYSE: GBL) slipped 3.99% or $2.01 to close at $48.33 on Friday.

Gamco is a Rye, N.Y.-based investment firm that operates under the Gamco and Gabelli brands.

Cascade already holds several convertible promissory notes due Aug. 14, 2011 from Gamco that have a principal amount of $40 million.

Avanti raises for mine

Avanti Mining said it is taking a C$20 million 15% bridge loan from Resource Capital Fund IV LP.

The loan will become a convertible debenture if not repaid by July 15, 2009.

Upon closing, the company will issue 3 million shares as facility fees. An additional 3 million shares will be issued if the facility is not repaid in 180 days.

Proceeds will be used for Avanti's previously announced acquisition of mineral tenures in northern British Columbia around the former Kitsault molybdenum mine, for a feasibility study and for general corporate purposes.

Based in Vancouver, B.C., Avanti is a newly formed company focused on acquiring, exploring and developing mineral resource projects.

"We are very pleased to have been able to secure financing for the acquisition of the Kitsault molybdenum mine, especially in the context of the current market environment," Avanti president and chief executive Craig J. Nelsen said in a statement.

"This funding commitment reaffirms our belief that the Kitsault Molybdenum mine is one of the world's top development stage Moly assets. We are also gratified to have this support from RCF, a group well known for careful technical and commercial evaluation of the investments it makes."

York completes placement

York Pharma said it completed a $7.18 million institutional placing and a $44.02 million loan in senior secured debt and convertible notes.

Rodman & Renshaw, LLC was the lead agent.

Proceeds will be used to finance the acquisition of the worldwide commercial rights to two leading skin care and wound healing products, Flammazine and Flammacerium, from Solvay Pharmaceuticals BV and support future operations.

Based in Milton Keynes, England, York Pharma is a pharmaceutical company focused on dermatology products.

"The acquisition will enable the York management team to leverage York's existing sales and marketing infrastructure and will enable us to become self financing during the first full year of operations post closing," York chief executive Terry Sadler said in a press release.

"The deal was particularly attractive to investors because both products are already approved for sale in 21 countries," he added. "Currently sales of Flammazine and Flammacerium are concentrated in France, Germany, Belgium and Spain. Now we intend to access the lucrative North American market, particularly with Flammacerium, a novel product which has an orphan drug designation."

Alex Charlton, a partner at Rodman & Renshaw, also stated: "The capital and credit markets may be in turmoil but investors are still actively seeking opportunities to participate in the right deals."

© 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.