Coeur d'Alene greenshoe exercised, lifts 3.25% convertibles due 2028 to $230 million

By Devika Patel

Knoxville, Tenn., March 18 - Underwriters for Coeur d'Alene Mines Corp.'s 3.25% convertible senior notes due March 15, 2028 exercised their over-allotment option in full for $30 million more of the notes, increasing the size of the issue to $230 million, the company said in a news release.

As previously reported, Coeur d'Alene sold the notes at par on March 12 with an initial conversion premium of 30%. The notes have a conversion price of $5.681 per share and are non-callable for seven years, with puts in years five, seven, 10 and 15. The bonds have full dividend and cash make-whole takeover protection.

Deutsche Bank Securities Inc. was bookrunner for the deal, and J.P. Morgan Securities Inc. was co-manager of the offering, which was sold under a shelf registration statement.

The company plans to use the proceeds to complete construction of the San Bartolome silver project in Bolivia and to construct the Palmarejo silver and gold project in Mexico.

Any remaining proceeds may be used to repay borrowings under the company's bridge loan facility and bank facility and for general corporate purposes.

Coeur d'Alene is an Idaho-based silver and gold producer with mining interests in Alaska, Nevada, Argentina, Australia, Bolivia, Chile and Tanzania.

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