Coeur d’Alene Mines Corporation Announces Redemption and Repurchase of Its 1.25% Convertible Senior Notes for Cash
December 10 2010 - 4:05PM
Business Wire
Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today
announced that it is calling for redemption all of its outstanding
1.25% Convertible Senior Notes due 2024. As of December 9, 2010,
there was $1,859,000 aggregate principal amount of Notes
outstanding.
Pursuant to the terms of the Indenture dated January 13, 2004
governing the Notes, the Notes will be redeemed on January 21, 2011
at a redemption price of 100% of the principal amount of the Notes
to be redeemed, plus accrued but unpaid interest thereon, up to,
but not including, the Redemption Date. Interest on the Notes
called for redemption ceases to accrue on and after the Redemption
Date.
The Bank of New York Mellon, as Trustee under the Indenture, has
been directed to send a notice of redemption to the Depository
Trust Company, as depositary with respect to the Notes. Notes held
in book-entry form will be redeemed in accordance with the
procedures of the Depository Trust Corporation.
The Indenture also provides the holders of the Notes with a
right to require the Company to purchase their Notes on January 18,
2011. 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 thereon, up to, but not including, January 15,
2011. To the extent that holders do not exercise this put right
before 5:00 p.m. on January 14, 2011, the Notes will be redeemed on
January 21, 2011.
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 December 15, 2010 until 5:00 p.m.
on January 14, 2011, 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 at any time before 5:00 p.m. on
January 19, 2011. The current conversion price is $76.00 per share
of common stock of the Company and the December 9, 2010 closing
price of the common shares of the Company, as reported on the New
York Stock Exchange, was $26.03. Each $1,000 principal amount of
the Notes is convertible into 13 shares of common stock of the
Company plus cash in lieu of 0.1579 fractional shares, subject to
adjustment under certain circumstances as set forth in the
Indenture. Notes as to which a Repurchase Notice has been given may
be converted only if the applicable Repurchase Notice has been
withdrawn in accordance with the terms of the Indenture.
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. on January 14, 2011, 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 and Conversion Agent, can be
contacted at:
The Bank of New York Mellon 101 Barclay Street – 4E New York, NY
10286 Attention: Global Finance Americas Fax: (212) 815-5802
The CUSIP number, CUSIP No. 192108AQ1 is included solely for the
convenience of the holders of the Notes. No representation is made
as to their 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 d’Alene Mines Corporation is one of the world’s leading
silver companies and also a growing gold producer. Coeur is also a
recognized leader in environmental stewardship and worker safety,
with 13 national and international awards earned over the past
year. The Company’s three new long-life mines include the San
Bartolomé silver mine in Bolivia which began operations in 2008,
the Palmarejo silver/gold mine in Mexico, which began operations in
2009, and the Kensington gold mine in Alaska, which began
production in June of this year. The Company also owns underground
mines in Argentina and one surface mine in Nevada, and owns a
non-operating interest in a low-cost mine in Australia. The Company
conducts exploration activities in Alaska, Argentina and Mexico.
Coeur common shares are traded on the New York Stock Exchange under
the symbol CDE and the Toronto Stock Exchange under the symbol
CDM.
Cautionary Statement
This press release contains forward-looking statements within
the meaning of securities legislation in the United States, Canada,
and Australia. Such statements are subject to numerous assumptions
and uncertainties, many of which are outside the control of Coeur,
as well as other uncertainties and risk factors set out in filings
made from time to time with the SEC, the Canadian securities
regulators, and the Australian Securities Exchange, including,
without limitation, Coeur’s reports on Form 10-K and Form 10-Q.
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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