VANCOUVER — On June 1, 2009, Goldcorp announced that it would issue convertible senior notes to raise US$750.0 million in a private offering. The $112.5-million over-allotment was exercised as well, netting the gold producer approximately US$839.9 million.
The notes will bear interest at a rate of 2% per year, payable semi-annually, beginning on Feb. 1, 2010. They will mature on Aug. 1, 2014. The notes will have an initial conversion rate of 20.8407 Goldcorp common shares per $1,000 principal amount of converted notes, representing an initial conversion price of approximately US$47.98 per common share, which is approximately 130% of the closing price of Goldcorp common shares on the New York Stock Exchange on June 1, 2009.
Goldcorp says it will use US$330.0 million of the capital to repay indebtedness under its revolving term credit facility. The balance is earmarked for capital expenditures and general corporate purposes.
Goldcorp produced almost 1.7 million oz of gold in 2008. The complete annual report can be read at www.Goldcorp.com.
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