Minefinders prices $75 million five-year convertibles to yield 4.5%, up 36%

By Kenneth Lim

Boston, Oct. 18 - Canada's Minefinders Corp. Ltd. priced $75 million of five-year convertible senior notes after the close Wednesday, selling them to yield 4.5% and with a 36% initial conversion premium.

The price at the cheap end of talk, which had put the coupon at 4% to 4.5% but with an initial conversion premium much richer than talk of 26% to 32%.

The conversion price is $10.88 and the conversion ratio 91.9118.

The convertible was offered at par.

There is an over-allotment option for a further $10 million.

JP Morgan was the bookrunner of the Rule 144A offering.

The convertible is non-callable.

The notes have dividend and takeover protection.

Minefinders, a Vancouver, B.C.-based precious metals exploration company, said the proceeds of the deal will be used to build and set up its proposed Dolores gold and silver mine in Mexico.

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