Kirkland Lake greenshoe exercise ups 6% convertibles to C$57.5 million

By Susanna Moon

Chicago, July 19 - Kirkland Lake Gold Inc. underwriters exercised the 15% over-allotment option on the 6% five-year convertible debentures that priced June 28, bringing the total deal size to C$57.5 million.

As previously reported, the company priced C$50 million of the convertibles at par on a bought-deal basis to yield 6% with in initial conversion premium of 40%.

The deal was bought by a syndicate of underwriters led by Dundee Securities Ltd. and including National Bank Financial Inc. and CIBC World Markets.

The conversion price is $15.00 per share, or at a ratio of 66.6667 shares per $1,000 principal amount of notes.

The debentures were 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.

Kirkland is a gold exploration company based in Kirkland Lake, Ont.

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