TORONTO – Franco-Nevada Corp. is bulking up its treasury thanks to a bought deal financing that will bring in half-a-billion dollars, at least. The company closed a deal whereby it issued 8.38 million common shares at a price of US$59.75 per share, and they were taken up on a bought deal basis by a syndicate led by RBC Capital Markets, CIBC and BMO Capital Markets.
The underwriters were also granted an over-allotment of up to 1.27 million additional Franco-Nevada shares that make by taken up in the next 30 days.
Franco-Nevada said it plans to use the net proceeds of the financing to fund royalty and stream acquisitions and general corporate purposes. The company can now fund all of its existing royalty and stream commitments from pre-existing cash and a portion of future cash flows.
The company has gold royalties and stream agreements from producers around the world, particularly Canada, the United States and Australia. Platinum group metals, other minerals, and oil and gas income all contributed to Franco’s US$107.7 million revenue in Q2 2014.
Click here to enjoy an interactive map of Franco-Nevada’s global assets.