By Rebecca Melvin
New York, June 1 - Goldcorp Inc. priced $750 million of five-year convertible senior notes after the close of markets on Monday at par to yield 2% with an initial conversion premium of 30%, according to a syndicate source.
The Rule 144A offering priced at the cheap end of talk, which was for a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%.
The deal was sold via bookrunners J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and Merrill Lynch.
There is a $112.5 million greenshoe.
The notes will be non-callable with no puts, with takeover and dividend protection, and may be settled in cash or a combination of cash and shares.
Proceeds are earmarked to repay debt under Goldcorp's revolving term credit facility, with the balance to be used for general corporate purposes, including capital expenditures.
Vancouver, B.C.-based Goldcorp is a producer of gold, silver, copper, lead and zinc.
| Issuer: | Goldcorp Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $750 million
|
| Greenshoe: | $112.5 million
|
| Maturity: | 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and Merrill Lynch
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 30%
|
| Price talk: | 1.5%-2%, up 30%-35%
|
| Call: | Non-callable for life
|
| Puts: | Change-of-control put
|
| Pricing date: | June 1
|
| Settlement date: | June 5
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: GG; Toronto: G
|
| Market capitalization: | $27 billion
|
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