By Rebecca Melvin
New York, June 28 - Kirkland Lake Gold Inc. priced C$50 million of five-year convertible debentures at par on a bought-deal basis to yield 6% with in initial conversion premium of 40%, according to a news release.
The deal was bought by a syndicate of underwriters led by Dundee Securities Ltd. There is a C$7.5 million, or 15%, greenshoe.
The notes are freely convertible at a conversion price of C$15.00 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., and for general corporate purposes, including working capital.
The offering is expected to close July 19.
Kirkland is a gold exploration company based in Kirkland Lake, Ont.
| Issuer: | Kirkland Lake Gold Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | Syndicate led by Dundee Securities Ltd.
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Premium: | 40%
|
| Conversion price: | C$15.00
|
| Settlement date: | July 19
|
| Stock symbol: | Toronto: KGI
|
| Stock price: | C$10.74 at close June 28
|
| Distribution: | Private placement in Canada, Rule 144A in U.S.
|
| Market capitalization: | C$753.4 million
|
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