By Laura Lutz
Des Moines, April 2 - Avoca Resources Ltd. announced a planned private placement of shares and a settled private placement of convertible bonds for a total of A$110 million.
The company plans to sell 50 million shares at A$1.25 to A$1.40 per share for proceeds of up to A$70 million. The exact price will be determined by a book-build process.
Of the shares, 22.56 million will be settled on April 10, under the company's 15% placing authority. The remaining 27.44 million will be placed on May 14, conditional on shareholder approval.
The share placements will be underwritten by UBS AG, Australia Branch.
The company has already completed the sale of A$40 million of convertible bonds, including a greenshoe for A$10 million.
The 6% bonds will be convertible at a 32.5% premium to the final price in the placement of shares, subject to a cap of A$1.83 per share.
Avoca may call the bonds after three years if the price of the company's shares at the time is at least 130% of the conversion price.
In addition to the placements, the company plans to raise up to A$5 million from a share purchase plan for existing shareholders.
Avoca is a gold company based in West Perth, Australia.
Shares
| Issuer: | Avoca Resources Ltd.
|
| Issue: | Shares
|
| Amount: | A$70 million (maximum)
|
| Shares: | 50 million
|
| Price: | To be determined
|
| Warrants: | No
|
| Underwriter: | UBS AG, Australia Branch
|
| Pricing date: | April 2
|
| Settlement date: | April 10 (for 22.56 million shares); May 14 (for remainder)
|
| Stock symbol: | Australia: AVO
|
| Stock price: | A$1.465 at close April 2
|
|
|
| Convertible bonds
|
| Issuer: | Avoca Resources Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | A$40 million (including greenshoe for A$10 million)
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | 32.5% premium to placement price per share
|
| Announcement date: | April 2
|
| Stock symbol: | Australia: AVO
|
| Stock price: | A$1.465 at close April 2
|
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