Cda Mines To Issue Stock To Retire Debt

Coeur d’Alene Mines Corp. will issue nearly 5 million new shares of common stock in December to retire bonds and save money on interest expenses.

The precious metals mining company has $74.9 million of debentures, or bonds, due in 2002. On Dec. 15, the bondholders will have the option to convert their holdings into common shares.

Coeur will pay $1,070 for every $1000 of bonds owned, or will allow the purchase of stock for $15.41 a share. With the company’s stock worth about $18.50 a share, that would increase the redemption of the bonds to $1,220 for each $1,000 of bonds owned.

Those who convert their debentures into common stock between the close of business on Nov. 30 and the close of business on Dec. 14, will be entitled to receive the $35 semi-annual interest payment for each $1,000 principal amount payable on Dec. 15.

The move will save Coeur $5.2 million in interest expenses each year, said Dennis Wheeler, president and chief executive officer.

, DataTimes