News
Coeur Prices Upsized Offering of $200 Million of Convertible Senior Notes Due 2028
COEUR D'ALENE, Idaho-(Business Wire)-March 13, 2008 - Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today announced the pricing of its $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 $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 September 15 of each year, beginning on September 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 $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $5.68 per share of common stock (representing a 30% conversion premium based on the closing price of $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.
The Company has filed a preliminary prospectus supplement and will file a final prospectus supplement with the Securities and Exchange Commission ("SEC") relating to the public offering of the convertible senior notes. Copies of this preliminary prospectus supplement and the final prospectus supplement may be obtained from Deutsche Bank Securities Inc. Prospectus Department, 100 Plaza One, Jersey City, NJ 07311-3901, by telephone toll free at 1-800-503-4611, or by email at prospectusrequest@list.db.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy convertible senior notes nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
A registration statement relating to these securities (including a prospectus and applicable prospectus supplement) has been filed with the SEC. Prospective investors should read the prospectus, prospectus supplement, the registration statement and other documents that Coeur d'Alene Mines Corporation has filed with the SEC for more complete information about the Company and this offering. These documents are available at no charge by visiting EDGAR on the SEC's Web site at http://www.sec.gov.
About Coeur
Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. Coeur, which has no silver or gold production hedged, is presently constructing two of the world's largest silver mines - San Bartolome in Bolivia and Palmarejo in Mexico; operates two underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns non-operating interests in two low-cost mines in Australia. The Company also owns a major gold project in Alaska and conducts exploration activities in Argentina, Bolivia, Chile, Mexico and Tanzania. Coeur currently expects to produce approximately 16 million ounces of silver in 2008, representing nearly a 40% increase over 2007 silver production levels. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC.
Cautionary Statement
This press release may contain forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding the offering and the use of the net proceeds from the offering. These forward-looking statements involve risks and uncertainties. Factors that could cause actual events to differ materially from those predicted in such forward-looking statements include market conditions, potential fluctuations in the Company's stock price, management's broad discretion over the use of the net proceeds of the offering, changes in U.S. generally accepted accounting principles or in their interpretation. Certain of these risks and others are detailed from time to time in Company's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2007 and in the registration statement. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Search Our News Using Google Search
Can't find what you want? Try using Google:
