Coeur Completes $200 Million At-the-Market Common Stock Offering & Announces Partial Redemption of Its 7.875% Senior Notes Du...
November 17 2016 - 12:18PM
Business Wire
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced that, as of November 16, 2016, it completed its
previously announced at-the-market (“ATM”) common equity offering
program. The Company issued 17,691,094 shares of common stock for
gross proceeds of $200 million.
The Company plans to use the net proceeds from the ATM offering
to redeem $190 million aggregate principal amount of its 7.875%
Senior Notes due 2021 (the “Notes”) of which there was
approximately $368 million aggregate principal amount outstanding
as of November 15, 2016. The redemption date will be December 16,
2016. The “make-whole premium” redemption price will be calculated
in accordance with the terms and conditions of the Notes. Interest
on the Notes called for redemption will cease to accrue on and
after the redemption date.
“With the completion of our ATM equity offering and expected
further reductions in our remaining debt levels, we plan to end the
year with one of the stronger, more flexible balance sheets in the
sector,” said Mitchell J. Krebs, President and Chief Executive
Officer. “Following the completion of this partial redemption, our
total debt will have declined by over 60% since the end of the
third quarter 2015, translating to over $29 million in anticipated
annual cash interest savings that will be invested in initiatives
that will lead to high-quality future growth of our Company.”
This news release shall not constitute an offer to sell or a
solicitation of an offer to purchase common stock or any other
securities, and shall not constitute an offer, solicitation, or
sale in any state or jurisdiction in which such an offer,
solicitation, or sale would be unlawful.
About Coeur
Coeur Mining is a well-diversified, growing precious metals
producer with five precious metals mines in the Americas employing
approximately 2,000 people. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold complex in Mexico, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in
Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia as well as a royalty
interest in Ecuador. In addition, the Company has two silver-gold
exploration stage projects - the La Preciosa project in Mexico and
the Joaquin project in Argentina. Coeur conducts ongoing
exploration activities in Alaska, Nevada, South Dakota and
Mexico.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding the anticipated use of proceeds of
the ATM program, reductions in debt levels, balance sheet strength,
interest savings, investments and growth. 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 (including those involving third-parties), the
uncertainties inherent in the estimation of gold and silver ore
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161117006096/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837www.coeur.com
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