By Susanna Moon
Chicago, Aug. 16 - Lake Shore Gold Corp. said it plans to issue C$75 million principal amount of 6.25% convertible senior debentures due Sept. 30, 2017 in a public offering on a bought-deal basis.
The conversion price is C$1.40 per common share, a premium of 28.44% over the company's closing price of C$1.09 on Aug. 15.
The notes are callable beginning Sept. 30, 2015 at par plus accrued interest if the volume-weighted average trading price of the company's common shares on the Toronto Stock Exchange is at least 130% of the conversion price for the 20 consecutive trading days preceding the redemption notice, according to a company press release.
The securities are being offered outside the United States under Regulation S and to U.S. persons under Rule 144A.
Proceeds will be used to retire the company's $50 million three-year corporate revolving facility and for general corporate purposes.
Lake Share is a gold producer based in Vancouver, B.C.
| Issuer: | Lake Shore Gold Corp.
|
| Issue: | Convertible senior debentures
|
| Amount: | C$75 million
|
| Maturity: | Sept. 30, 2017
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion price: | C$1.40
|
| Conversion premium: | 28.44%
|
| Conversion ratio: | 714.2857
|
| Pricing date: | Aug. 16
|
| Stock symbol: | Toronto: LSG
|
| Stock price: | C$1.09 at close Aug. 15
|
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