Golden Star Resources offers $65 million convertible notes due 2021

By Rebecca Melvin

New York, July 25 – Golden Star Resources Ltd. announced that it is offering $65 million of convertible senior notes due 2021, most of which will be used to exchange for existing convertibles due 2017, according to a news release.

As part of the Rule 144A and Regulation S offering, Golden Star has entered into exchange and purchase agreements with two holders of its 5% convertible senior unsecured debentures due June 1, 2017 to exchange about $40 million principal amount of the new paper.

Concurrently with the offering of new convertibles, Golden Star is pricing $30 million of common shares.

Proceeds of the offerings are being used to repurchase debt, including the convertibles and a term loan with Ecobank Ghana Ltd. Any remaining funds will be used for general corporate purposes. The company will not receive any cash proceeds from the exchange.

Golden Star is a Littleton, Colo.-based gold mining firm with share listings on the New York Stock Exchange, Toronto Stock Exchange and Ghana Stock Exchange.

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