Kirkland Lake 6%, 7.5% convertibles putable after Newmarket merger

New York, Dec. 1 – Kirkland Lake Gold Inc.’s 6% convertible unsecured subordinated debentures and 7.5% convertible unsecured subordinated debentures are putable on Dec. 30 following the company’s merger with Newmarket Gold Inc.

Holders can put the bonds at par plus accrued interest on Dec. 30, according to notices from the company.

Alternatively, holders can convert their securities at the change-of-control conversion price.

For the 6% debentures the change-of-control conversion price is C$14.33 per share while for the 7.5% debentures it is C$12.87 per share. The stock closed at C$7.46 on Wednesday.

If holders of more than 90% of either series of convertible either put back their securities or convert them, then the company will have the right to redeem the remaining debentures at par on Dec. 30.

Newmarket acquired Kirkland Lake in a transaction that closed on Nov. 30 and then changed its name to Kirkland Lake Gold Ltd.

The acquisition counted as a change of control under the indentures for the convertibles.

Kirkland Lake is a gold mining company based in Toronto with five mines in the Kirkland Lake region of Ontario.

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