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March 17, 2008 |
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COEUR D'ALENE: Prices US$200 Mil. Conv. Senior Unsecured Notes Coeur d'Alene Mines Corporation has priced its US$200 million in aggregate principal amount of convertible senior unsecured notes due 2028 to be issued under an effective shelf registration statement on file with the U.S. Securities and Exchange Commission. The company has also granted the underwriters an option to purchase up to an additional US$30 million aggregate principal amount of notes solely to cover over-allotments. Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. are acting as the underwriters of the offering with Deutsche Bank Securities Inc. acting as sole book-running manager. The notes will bear interest at a rate of 3 1/4% per year, payable on March 15 and Sept. 15 of each year, beginning on Sept. 15, 2008. The notes will mature on March 15, 2028, unless earlier converted, redeemed or repurchased by the company. Each holder of the notes may require that the company repurchase some or all of the holder's notes on March 15, 2013, March 15, 2015, March 15, 2018, and March 15, 2023, at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest, in cash, shares of common stock or a combination of cash and shares of common stock, at the company's election. Holders will also have the right, following certain fundamental change transactions, to require the company to repurchase all or any part of their notes for cash at a repurchase price equal to 100% of the principal amount of the notes to be repurchased plus accrued and unpaid interest. The company may redeem the notes for cash in whole or in part at any time on or after March 22, 2015, at 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest. The notes will be convertible under certain circumstances, at the holder's option, at an initial conversion rate of 176.0254 shares of the company's common stock per US$1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately US$5.68 per share of common stock (representing a 30% conversion premium based on the closing price of US$4.37 per share of the company's common stock on March 12, 2008), subject to adjustment in certain circumstances. The notes will provide for "net share settlement" of any conversions, which limits the number of shares of common stock to be issued in the future. Pursuant to this feature, upon conversion of the notes, the company 1) will pay the note holder an amount in cash equal to the lesser of the conversion obligation or the principal amount of the notes, and (2) will settle any excess of the conversion obligation above the notes' principal amount in the company's common stock, cash or a combination thereof, at the company's election. The company intends to use the proceeds of this offering to complete the construction of the San Bartolome silver project in Bolivia and fund construction of the Palmarejo silver/gold project in Mexico. Any additional remaining proceeds may be used to repay borrowings under the company's bridge loan facility and bank facility and for general corporate purposes. Closing of the public offering of the notes is expected to occur on March 18, 2008, and will be subject to the satisfaction of various customary closing conditions. About Coeur d'Alene Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/ -- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. |
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