Mirabela trustee to sell 3.62 million of noteholder shares on Nov. 28

By Caroline Salls

Pittsburgh, Nov. 21 – Mirabela Nickel Ltd. bare trustee Mirabela Investments Pty. Ltd. (MIPL) will sell down on market fully paid ordinary shares in Mirabela Nickel on Nov. 28, according to a news release.

The shares will be sold on behalf of holders of the company’s 8¾% senior notes due 2018 who issued a sale instruction for the shares they were entitled to receive under Mirabela Nickel’s deed of company arrangement.

The deed of company arrangement and a related letter of transmittal require MIPL to sell the shares for which it has received a cash-out instruction on market on Aug. 29, Nov. 28, Feb. 27 and May 29, 2015 and every 30 days after that until all cash-out shares have been sold.

Since the last sale date, the company said MIPL has received cash-out instructions from five of the noteholders, representing $1.66 million of notes and in connection with 3.62 million shares. If there is sufficient demand on Nov. 28, MIPL intends to sell all of those shares at market price.

If MIPL is unable to sell all of the shares on Nov. 28, it will remit to each noteholder who submitted cash-out instruction its share of the proceeds from the sale of cash-out shares sold on Nov. 28. MIPL will attempt to sell any remaining cash-out shares on subsequent sale dates.

As previously reported, Mirabela’s board of directors will treat each cash-out sale date as a “black-out period” under the company’s securities trading policy.

Any Mirabela Nickel shares not claimed by noteholders by June 16, 2015 will be sold into the market, and the proceeds will be held by MIPL on trust for accounted noteholders until June 16, 2020.

In addition, the company said it will issue replacement 1% 30-year subordinated notes as a result of an administrative error that incorrectly stated the name or address of the beneficial holders of a significant number of the notes issued on Sept. 10.

The replacement notes, which are expected to be issued during the first half of December, will have the same terms as the existing notes.

Mirabela is a nickel producer located in Perth, Western Australia.

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