Eldorado Gold talks $300 million five-year second-lien notes in 10% area including discount

By Paul A. Harris

Portland, Ore., May 21 – Eldorado Gold Corp. talked its restructured $300 million offering of five-year senior secured second-lien notes (Caa1/B) in the 10% area, including a discount, according to a syndicate source.

There were also structural and document changes.

The deal, which was marketed last week on an investor roadshow, is set to price following the close of books, which is scheduled to take place at 3 p.m. ET on Tuesday.

BofA Securities Inc. is the left bookrunner for the Rule 144A and Regulation S for life offering. BMO Securities, HSBC Securities, NBC Financial Markets and BNP Paribas Securities Corp. are the joint bookrunners.

In a structural revision, call protection was increased to 2.5 years from two years and the initial call premium was increased to 75% of the coupon from 50%.

The Vancouver, B.C.-based gold mining company plans to use the proceeds, together with borrowings under its senior credit facility and cash on hand, to redeem its outstanding $600 million of 6 1/8% senior notes due 2020.

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