The offer is currently conditional to market and others.
Holders of the notes can convert them into cash, shares of Royal Gold’s common stock, or a combination of both at Royal Gold’s discretion. The conversion at any stage will be conditional.
These notes which will be senior unsecured obligations of Royal Gold will earn interest semiannually. Rate of interest payable, conversion price and other terms of the offering will be decided at the pricing stage.
Net proceeds from this offering will be used to repay outstanding loans and terminate these facilities. Part of the proceeds will also be set aside for future acquisition and general corporate purposes.
Royal Gold is hopeful of offering the underwriters a 30-day over-allotment option which allows them to purchase an additional $45m of aggregate principal amount of notes.
Goldman Sachs will be the sole book-running manager for the offering with HSBC and Scotia Capital acting as the lead managers for this offering.
