An anonymous director reports
AURICO GOLD ANNOUNCES CLOSING OF $315 MILLION SENIOR SECURED SECOND LIEN NOTES OFFERING; SATISFACTION OF FINANCING CONDITION OF TENDER OFFER FOR CONVERTIBLE
NOTES
AuRico Gold Inc. has closed
its private offering of $315-million aggregate principal amount of
senior secured second-lien notes due 2020. (All amounts are in U.S. dollars, unless otherwise indicated.) The notes were
issued with a coupon of 7.75 per cent and sold at 96.524 per cent of par, and are
expected to result in net proceeds to the company of approximately $297-million, after deducting the initial purchasers' discounts and
estimated offering expenses payable by the company. AuRico intends to
use the net proceeds of the notes to repurchase its convertible notes
due 2016 that are tendered to AuRico's offer
announced March 6, 2014, and which expires at 12 midnight Eastern
Time on April 2, 2014, to purchase any and all of its convertible
notes, to finance principal and interest payments on any convertible notes
that remain outstanding following the offer to purchase, to repay
amounts outstanding under its existing senior secured credit facility,
and for general corporate purposes, which may include financing capital
expenditures to support organic growth.
The closing of the notes offering satisfies the financing condition of
the company's tender offer for the convertible notes.
We seek Safe Harbor.
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