Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced that it is offering to repurchase all of its outstanding
3.25% Convertible Senior Notes due 2028 (the "Notes"). As of
February 11, 2015 there was $5,334,000 aggregate principal amount
of Notes outstanding.
The Indenture governing the Notes provides the holders of the
Notes with a right to require the Company to purchase their Notes
on March 15, 2015. To the extent that holders exercise this put
right, the Company will pay a repurchase price in cash, consisting
of 100% of the principal amount of the Notes repurchased, plus
accrued but unpaid interest, up to, but not including, March 15,
2015.
Holders may exercise their put right by delivery to the Company
and the Paying Agent of a written notice of purchase at any time
from the opening of business on February 12, 2015 until 5:00 p.m.
Eastern time on March 13, 2015, stating (i) the certificate number
of the Note which the Holder will deliver to be repurchased, (ii)
the portion of the principal amount of the Note which the Holder
will deliver to be repurchased, which portion must be in a
principal amount of $1,000 or an integral multiple thereof and
(iii) that such Note shall be repurchased as of the Repurchase Date
pursuant to the terms and conditions specified in paragraph 6 of
the Notes and in the Indenture, or by delivery or book-entry
transfer of such Notes to the Paying Agent prior to, on or after
the Repurchase Date at the offices of the Paying Agent. Unless the
Company defaults in making payment of the Repurchase Price,
interest on Notes covered by any Repurchase Notice will cease to
accrue on and after the Repurchase Date.
The Notes may be converted during the periods or upon the events
described in the Indenture. Upon a conversion of the Notes, a
Holder would be entitled to receive a cash payment equal to the
"Principal Portion" (as defined in the Indenture) plus, in certain
circumstances, an amount in excess thereof paid in cash, shares of
our common stock or a combination thereof, at the Company's
election. The type and amount of consideration a Holder would
receive upon conversion of its Notes would depend on, among other
things, the conversion rate applicable at the time of conversion,
the trading prices of the Company's common stock during a 20-day
trading period beginning on the second business day following the
Holder's conversion election and whether the Company elects to
settle any excess amount in cash, common stock or a combination
thereof. The conversion rate in effect on February 12, 2015 was
17.6025 shares of common stock per $1,000 principal amount of the
Notes and the conversion price in effect at that time was $56.81
per share of common stock.
A Repurchase Notice may be withdrawn by means of a written
notice of withdrawal delivered to the office of the Paying Agent in
accordance with the Repurchase Notice at any time prior to 5:00
p.m. Eastern time on March 13, 2015, specifying (i) the certificate
and principal amount of the Note in respect of which such notice of
withdrawal is being submitted and (ii) the principal amount, if
any, of such Note which remains subject to the original Repurchase
Notice and which has been or will be delivered for purchase by the
Company.
The Repurchase Price for any Notes as to which a Repurchase
Notice has been given and not withdrawn shall be paid promptly
following the later of the Repurchase Date and the time of
surrender of such Notes.
Notes must be surrendered to the Paying Agent to collect payment
of the Repurchase Price and accrued but unpaid interest. The Bank
of New York Mellon, as Paying Agent, can be contacted at:
The Bank of New York Mellon 111 Sanders Creek Parkway East
Syracuse, NY 13057 Attention: Corporate Trust – Reorg Fax: (732)
667-9408
The CUSIP number, CUSIP No. 192108 AR9 is included solely for
the convenience of the holders of the Notes. No representation is
made as to its correctness. This press release shall not constitute
an offer to sell, or the solicitation of an offer to buy, any
security and shall not constitute an offer, solicitation or sale in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Coeur
Coeur Mining is the largest U.S.-based primary silver producer
and a significant gold producer with four precious metals mines in
the Americas employing nearly 2,000 people. Coeur produces from its
wholly owned operations: the Palmarejo silver-gold mine in Mexico,
the San Bartolomé silver mine in Bolivia, the Rochester silver-gold
mine in Nevada and the Kensington gold mine in Alaska. The Company
also has a non-operating interest in the Endeavor mine in Australia
in addition to net smelter royalties on the Cerro Bayo mine in
Chile, the El Gallo complex in Mexico, and the Zaruma mine in
Ecuador. In addition, the Company has two silver-gold feasibility
stage projects - the La Preciosa project in Mexico and the Joaquin
project in Argentina. The Company also conducts ongoing exploration
activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The
Company owns strategic investment positions in several silver and
gold development companies with projects in North and South
America.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the risks and hazards inherent in the mining business
(including risks inherent in developing large-scale mining
projects, environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold and silver and a sustained lower price environment, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, ground conditions, grade variability, any
future labor disputes or work stoppages, the uncertainties inherent
in the estimation of gold and silver reserves, changes that could
result from Coeur's future acquisition of new mining properties or
businesses, reliance on third parties to operate certain mines
where Coeur owns silver production and reserves and the absence of
control over mining operations in which Coeur or its subsidiaries
hold royalty or streaming interests and risks related to these
mining operations including results of mining and exploration
activities, environmental, economic and political risks of the
jurisdiction in which the mining operations are located, the loss
of any third-party smelter to which Coeur markets silver and gold,
the effects of environmental and other governmental regulations,
the risks inherent in the ownership or operation of or investment
in mining properties or businesses in foreign countries, Coeur's
ability to raise additional financing necessary to conduct its
business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to
time with the United States Securities and Exchange Commission, and
the Canadian securities regulators, including, without limitation,
Coeur's most recent reports on Form 10-K and Form 10-Q. Actual
results, developments and timetables could vary significantly from
the estimates presented. Readers are cautioned not to put undue
reliance on forward-looking statements. Coeur disclaims any intent
or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Coeur undertakes no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Coeur, its financial or operating results or its
securities.
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
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