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Kirkland Lake says holders may convert C$61.97 million of 7.5% notes
By Susanna Moon
Chicago, Dec. 6 – Kirkland Lake Gold Ltd. said holders may convert its C$61,969,000 principal amount of 7.5% unsecured convertible debentures issued by wholly owned subsidiary Kirkland Lake Gold Inc.
The notes are convertible into the company’s common shares until 11 a.m. ET on Dec. 15, according to an announcement by the company.
The debentures are convertible at a price of C$13.70 per share, or a conversion rate of 72.9927 common shares for each C$1,000 principal amount of debentures.
The company’s shares (Toronto: KL) closed at C$17.91 on Dec. 5.
Kirkland Lake previously said on Dec. 1 that its 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.
The notes also are convertible 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.
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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