Coeur d’Alene Mines Corp. on Wednesday completed the sale of $143.75 million in convertible subordinated debentures due in 2005.
If held, the debentures will earn 7-1/4 percent annually, but Coeur retains the option of converting them into common stock after October 2000, at a price of $17.45 per share.
The offering, made available only to qualified institutional buyers, was not registered under the Securities Act through terms made possible under Rule 144A.
“That rule allows companies to accelerate the timing and price the deal quickly in advance of filing,” said Mitchell Krebs, Coeurs’ manager of investor relations and new business development. “Silver made a strong move over the past couple of weeks and attracted investor interest, so we wanted to strike while the iron was hot.”
Coeur will use proceeds from the sale to pay down $50 million in bank debts, fund new acquisitions and for “general corporate uses,” Krebs said.