By Rebecca Melvin
New York, Oct. 16 - Kirkland Lake Gold Inc. priced C$60 million of five-year convertible debentures on a bought-deal basis at par to yield 7.5% with an initial conversion premium of 30.5%, according to a company news release.
The private placement, which will be sold in all the provinces of Canada and in the United States under Rule 144A, was bought by Dundee Securities Ltd. and CIBC as co-lead underwriters for the deal, which has an option for up to an additional $9 million of debentures.
The convertible unsecured subordinated debentures with C$1,000 par will be convertible at the holder's option into common shares at a conversion price of C$13.70 per share.
Proceeds will be used to fund the production expansion program at its mining operations in Kirkland Lake, Ont., to complete remaining payments due to Queenston Mining Inc. related to the acquisition of various joint venture projects and for general corporate purposes, including working capital.
All securities issued will be subject to a statutory four-month hold period. The offering is subject to a number of conditions, including, regulatory approvals.
Kirkland is a gold exploration company based in Kirkland Lake, Ont.
| Issuer: | Kirkland Lake Gold Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$60 million
|
| Greenshoe: | C$9 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | Dundee Securities Ltd. and CIBC
|
| Coupon: | 7.5%
|
| Price: | Par, C$1,000
|
| Yield: | 7.5
|
| Premium: | 30.5%
|
| Conversion price: | C$13.70
|
| Conversion ratio: | 72.9927 common shares
|
| Settlement date: | Nov. 7
|
| Stock symbol: | Toronto: KGI
|
| Stock price: | C$10.50 at close Oct. 16
|
| Distribution: | Private placement in Canada, Rule 144A in U.S.
|
| Market capitalization: | C$736.58 million
|
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