By Rebecca Melvin
New York, Sept. 10 - Jaguar Mining Inc. priced an upsized $150 million of five-year convertible notes Thursday after the close at par to yield 4.5% with an initial conversion premium of 26.24%, according to a syndicate source.
Initially the deal size was expected to be $110 million. There is an over-allotment option for an additional $15 million of notes.
The Rule 144A offering, sold via bookrunner J.P. Morgan Securities Inc., priced near the rich end of talk, which had been tightened from launch to a coupon of 4.5% and an initial conversion premium of 25% to 27.5%, from a coupon of 4.5% to 5% and premium of 22.5% to 27.5%.
Proceeds will be used to repurchase the company's outstanding 10.5% secured notes and to fund exploration and pre-development of a gold property that has not yet produced gold commercially.
The balance of proceeds will be used for working capital and general corporate purposes, which may include funding operations, development, acquisitions and capital expenditures.
The paper is non-callable with no puts. There is dividend and takeover protection.
Concord, N.H.-based Jaguar Mining is a gold mining concern.
| Issuer: | Jaguar Mining Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Amount: | $150 million, upsized from $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | September 2014
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 26.24%
|
| Conversion price: | $12.75
|
| Conversion ratio: | 78.4314
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | Tightened to 4.5%, up 25%-27.5%, from 4.5%-5%, up 22.5%-27.5%
|
| Pricing date: | Sept. 10 after the close
|
| Distribution: | Rule 144A
|
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