Coeur Mining (CDE) Launches $400M Private Exchange Offer for Senior Notes Due 2032

Coeur Mining Inc (NYSE:CDE) is one of the low-priced stocks to buy with huge upside potential. On March 23, Coeur Mining launched a private exchange offer and consent solicitation for $400 million in 6.875% Senior Notes due 2032, originally issued by New Gold Inc. This follows Coeur’s completed acquisition of New Gold, which triggered a change of control provision. By initiating this exchange for new Coeur-issued notes, the company aims to avoid the requirement of a mandatory 101% cash repurchase offer and seeks to amend the existing indenture to eliminate the most restrictive covenants.

Eligible holders who participated by the early deadline of April 3 were offered a total consideration of $1,000 in new notes and $2.00 in cash for every $1,000 of existing notes. Those tendering after this date but before the April 20 expiration are eligible for a reduced exchange consideration of $950 in new notes. The new notes will maintain the same interest rate, maturity, and redemption terms as the original New Gold notes, with the settlement expected to occur around April 22.

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The consent solicitation requires approval from a majority of noteholders to implement the proposed amendments. If the required threshold is met, any existing notes not exchanged will be subject to the new, less restrictive terms. Coeur Mining Inc (NYSE:CDE) is using RBC Capital Markets as the dealer manager for the transaction, which is being conducted as a private placement exempt from registration under the Securities Act.

Coeur Mining Inc (NYSE:CDE) is a gold and silver producer in the US, Canada, and Mexico. The company explores for gold, silver, zinc, lead, and other related metals. It markets and sells its concentrates to third-party customers, including refiners and smelters, under off-take agreements.

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