By Kenneth Lim
Boston, Oct. 19 - Canada's Minefinders Corp. Ltd. on Wednesday priced $75 million of five-year convertible senior notes with the coupon of 4.5%, at the cheap end of talk, while the initial conversion premium of 36% was higher than original guidance.
The notes were offered at par and priced after the market closed. Price talk was for a coupon of 4% to 4.5% and an initial conversion premium of 26% to 32%.
There is an over-allotment option for a further $10 million.
JP Morgan was the bookrunner of the Rule 144A offering.
The initial conversion price was set at $10.88 per share, or an initial conversion ratio of 91.9118 shares per note.
The convertibles are 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.
| Issuer: | Minefinders Corp. Ltd.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | JP Morgan
|
| Amount: | $75 million
|
| Greenshoe: | $10 million
|
| Maturity: | Dec. 15, 2011
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 36%
|
| Conversion price: | $10.88
|
| Conversion ratio: | 91.9118
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4%-4.5%, up 26%-32%
|
| Pricing date: | Oct. 18 after the close
|
| Settlement date: | Oct. 24
|
| Distribution: | Rule 144A
|
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