New Issue: Golden Star prices $125 million 4% convertible senior debentures due 2012, up 31%

By Evan Weinberger

New York, Oct. 24 - Golden Star Resources Ltd. priced $125 million in 4% convertible senior unsecured debentures due Nov. 30, 2012 with an initial conversion premium of 31% Wednesday before the market open. The deal came cheaper than talk for a coupon of 3.5% to 4% and an initial conversion premium of 32.5% to 37.5%.

BMO Capital Markets is the bookrunner of the Rule 144A transaction. The debentures are also being offered in Canada on a private placement basis subject to Regulation S. The settlement date is Nov. 8.

The conversion price is $5 and the conversion ratio is 200.

The debentures have call protection for life. There is change of control protection.

Golden Star is a Littleton, Colo.-based gold mining firm. The company plans to use the proceeds to repay its existing $50 million in 6.85% senior convertible notes due April 15, 2009, and the balance for property development and for general corporate purposes.

Issuer: Golden Star Resources Ltd.

Issue: Convertible senior unsecured debentures

Amount: $125 million

Maturity: Nov. 30, 2012

Coupon: 4%

Price: Par

Yield: 4%

Conversion premium: 31%

Conversion price: $5.00

Conversion ratio: 200

Call: No

Put: No

Bookrunner: BMO Capital Markets

Distribution: Rule 144A

Settlement date: Nov. 8

Talk: 3.5%-4% coupon, up 32.5%-37.5%

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