All monetary amounts are expressed in U.S. dollars, unless
otherwise indicated.
TORONTO, Aug. 8, 2016 /PRNewswire/ - IAMGOLD
Corporation ("the Company") today announced that it has entered
into an agreement with a syndicate of underwriters led by TD
Securities Inc., National Bank Financial Inc. and Morgan Stanley
Canada Ltd., pursuant to which they have agreed to purchase, on a
bought deal basis, 38,850,000 common shares of the Company at a
price of $5.15 per common share (the
"Offering Price"), for aggregate gross proceeds to the Company of
approximately $200 million (the
"Offering"). The underwriters will also have the option,
exercisable in whole or in part, at any time up to 30 days
following the closing of the Offering, to purchase up to an
additional 5,827,500 common shares at the Offering Price to cover
over-allotments, if any. In the event that the option is exercised
in its entirety, the aggregate gross proceeds of the Offering to
the Company will be approximately $230
million.
The Company plans to use the net proceeds of the Offering to
strengthen its balance sheet, by reducing indebtedness, and to fund
future growth. The Company will use up to approximately
$150 million of the net proceeds to
fund its concurrently announced tender offer for its outstanding
6.75% senior notes. The Company intends to use the remainder
of the net proceeds to fund internal growth projects, including the
expansion of the Sadiola mine, subject to the timely approval of
its joint venture partner to proceed, for future debt reduction and
for general corporate purposes.
The Company expects to file a preliminary prospectus supplement
to its existing base shelf prospectus on or about August 8, 2016 and intends to file a final
prospectus supplement to its existing base shelf prospectus on or
about August 9, 2016, in each case
with the securities regulatory authorities in each of the provinces
and territories in Canada, other
than the Province of Québec, and the U.S. Securities and Exchange
Commission ("SEC").
The Offering is scheduled to close on or about August 16, 2016, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange and the New York Stock Exchange.
The tender offer is being made on the terms and subject to the
conditions set forth in the offer to purchase relating to the
tender offer, as such terms and conditions may be amended. The
Offering is not conditioned upon the consummation of the tender
offer. Nothing in this news release shall be construed as an offer
to purchase or a solicitation of an offer to sell any 6.75% senior
notes.
The Company has filed a registration statement (including the
existing base shelf prospectus) with the SEC for the Offering to
which this communication relates. Before you invest, you should
read the prospectus in that registration statement and other
documents the Company has filed with the SEC for more complete
information about the Company and the Offering. The Company has
also filed the existing base shelf prospectus with the securities
regulatory authorities in each of the provinces and territories in
Canada, other than the Province of
Québec. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov or via SEDAR at
www.sedar.com. Alternatively, the Company, any underwriter or
any dealer participating in the Offering will arrange to send you
the prospectus if you request it from TD Securities Inc. in
Canada, Attention: Symcor, NPM
(tel: 289-360-2009, email: sdcconfirms@td.com), 1625 Tech Avenue,
Mississauga ON L4W 5P5; or from TD Securities (USA) LLC in the
United States (tel: 212-827-7392), 31 W 52nd Street,
New York NY 10019 or from National
Bank Financial Inc. by phone at (416) 869-6534 or email at
ECM-Origination@nbc.ca or from Morgan Stanley Canada Ltd.,
Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
New York, NY 10014. A copy of the
prospectus included in the registration statement filed with the
SEC may be found in such registration statement at the link
below:
https://www.sec.gov/Archives/edgar/data/1203464/000119312516530887/d170590df10a.htm
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
common shares in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of that jurisdiction.
Forward Looking Statements
This news release contains forward-looking statements. All
statements, other than of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements with respect to the timing of the completion
and size of the Offering and the use of the proceeds of the
Offering, statements with respect to the expected completion of the
tender offer and the aggregate amount of 6.75% senior notes to be
purchased pursuant to the tender offer, statements regarding
expected, estimated or planned gold production, cash costs, margin
expansion, capital expenditures and exploration expenditures and
statements regarding the estimation of mineral resources,
exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements.
Forward-looking statements are generally identifiable by use of the
words "will", "continue", "expect", "estimate", "intend", "to
have", "plan" or "project" or the negative of these words or other
variations on these words or comparable terminology.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the Company's ability to
control or predict, that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from current expectations include,
among other things, without limitation, risks inherent to
completion of the Offering, failure to meet expected, estimated or
planned gold production, cash costs, margin expansion, capital
expenditures and exploration expenditures and failure to establish
estimated mineral resources, the possibility that future
exploration results will not be consistent with the Company's
expectations, changes in world gold markets and other risks
disclosed in IAMGOLD's most recent Form 40-F/Annual Information
Form on file with the SEC and Canadian provincial securities
regulatory authorities. Any forward-looking statement speaks only
as of the date on which it is made and, except as may be required
by applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement.
About IAMGOLD
IAMGOLD is a mid-tier mining company with four operating gold
mines on three continents. A solid base of strategic assets in
Canada, South America and Africa is complemented by development and
exploration projects and continued assessment of accretive
acquisition opportunities. IAMGOLD is in a strong financial
position with extensive management and operational
expertise.
SOURCE IAMGOLD Corporation