Vancouver's First Quantum Minerals Ltd. (TSX:FM) plans to raise at least US$450 million in a convertible debenture offering in the U.K. and other jurisdictions in Europe.
The company said the offering's net proceeds will provide it with longer-term debt capital to strengthen its financial position. The added liquidity will also allow First Quantum to repay or renegotiate short-term debt and allocate more financial resources to fund growth initiatives or acquisitions.
The long-term bonds, which are due June 19, 2014, are expected to have a semi-annual yield of between 6% and 6.5% per year. Their conversion price will be set at a premium of between 30% and 35% to the volume-weighted average price of First Quantum's shares.
The company could raise an additional US$50 million if the offering's over-allotment option is fully exercised.
Nomura International and Morgan Stanley are jointly running the offering; RBC Capital Markets is a co-manager.
First Quantum's share price range during the past week: between $47.12 and $49; 52-week high: $79.75; 52-week low: $12.75.