By Rebecca Melvin
New York, Aug. 20 - B2Gold Corp. priced $225 million of five-year convertible senior notes late Monday at par to yield 3.25% with an initial conversion premium of 37.5%, according to a syndicate source.
The Rule 144A deal priced at the midpoint of talk, which was for a 3% to 3.5% coupon and 35% to 40% premium.
There is an over-allotment option for up to $33.75 million of additional notes.
Joint bookrunners were J.P. Morgan Securities LLC and BMO Capital Markets Corp. Co-managers included TD Securities, GMP Securities, Canaccord and National Bank Financial.
The notes are non-callable for three years and then provisionally callable subject to a share price hurdle of 130%, with a coupon make-whole provision.
The notes will be settled by shares or cash, or a combination of cash and shares.
Proceeds are earmarked for general corporate purposes.
The company is a gold producer based in Vancouver, B.C.
| Issuer: | B2Gold Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $225 million
|
| Greenshoe: | $33.75 million
|
| Maturity: | Oct. 1, 2018
|
| Bookrunners: | J.P. Morgan Securities LLC and BMO Capital Markets Corp
|
| Co-managers: | TD Securities, GMP Securities, Canaccord and National Bank Financial
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $3.93
|
| Conversion ratio: 254.2912
|
| Call protection: | Non-callable for three years, then provisionally callable at 130% with a coupon make-whole
|
| Price talk: | 3%-3.5%, up 35%-40%
|
| Pricing date: | Aug. 19
|
| Settlement date: | Aug. 23
|
| Stock reference price: | $2.86 at close Aug. 19
|
| Market capitalization: | $1.9 billion
|
| Distribution: | Rule 144A
|
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