Financing arranged
NovaGold arranges $100-million (U.S.) note offering
2008-03-19 07:30 ET - News Release
Mr. Don MacDonald reports
NOVAGOLD ANNOUNCES OFFERING OF CONVERTIBLE SENIOR NOTES
NovaGold Resources Inc. is offering approximately $100-million (U.S.) total principal amount of its convertible senior notes due 2015 in the United States and Canada pursuant to a preliminary prospectus supplement to its base shelf prospectus dated April 16, 2007. NovaGold will grant the underwriter an option to purchase up to an additional approximately $15-million (U.S.) of notes during the period ending 30 days from the closing of the offering to cover overallotments, if any.
J.P. Morgan Securities Inc. is the underwriter for the offering.
The notes will have a semi-annual cash interest coupon to be determined at pricing and will be convertible into the company's common shares at a conversion price to be determined. Subject to the satisfaction of certain conditions, the company may, in lieu of delivery of common shares upon conversion of all or a portion of the notes, elect to pay cash or a combination of cash and common shares. The notes will not be redeemable by the company prior to maturity, except upon the occurrence of certain changes to the laws governing Canadian withholding taxes. Holders of the notes may require the company to repurchase for cash all or a portion of their notes in 2013 at a price equal to 100 per cent of the principal amount of such notes plus any accrued and unpaid interest. In addition, if the company experiences specified types of fundamental changes, it will be required to offer to repurchase for cash all of the outstanding notes at a price equal to 100 per cent of the principal amount of the notes to be repurchased plus any accrued and unpaid interest.