Offering conducted on a bought-deal basis by Dundee Securities, CIBC
By Devika Patel
Knoxville, Tenn., Oct. 16 - Kirkland Lake Gold Inc. priced C$60 million of five-year convertible debentures at par on a bought-deal basis to yield 7.5% with in initial conversion premium of 30.23%, according to a news release.
The deal was conducted by a syndicate of underwriters led by Dundee Securities Ltd. and CIBC. There is a C$9 million greenshoe.
The notes are freely convertible at a conversion price of C$13.70 per common share.
The debentures are being offered by way of private placement to investors in all the provinces of Canada and in the United States under Rule 144A.
Proceeds will be used to expand mining operations in Kirkland Lake, Ont., payments due to Queenston Mining Inc. related to the acquisition of projects and for general corporate purposes, including working capital.
Settlement is expected Nov. 7.
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: | Dec. 31, 2017
|
| Coupon: | 7.5%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Conversion price: | C$13.70
|
| Conversion ratio: | 72.9927
|
| Conversion premium: | 30.23%
|
| Underwriters: | Dundee Securities Ltd. and CIBC (leads)
|
| Distribution: | Private placement in Canada, Rule 144A in U.S.
|
| Pricing date: | Oct. 16
|
| Settlement date: | Nov. 7
|
| Stock symbol: | Toronto: KGI
|
| Stock price: | C$10.52 at close Oct. 15
|
| Market capitalization: | C$736.58 million
|
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