B2Gold Announces Offering of Convertible Senior Notes
B2Gold Corp. (BTG) has announced an offering of convertible senior unsecured notes due 2030, with an aggregate principal amount of US$350 million. Initial purchasers will have a 15-day option to buy an additional US$52.5 million in notes.
The company plans to use the net proceeds for working capital and general corporate purposes, initially paying down its revolving credit facility balance. The notes will bear semi-annual cash interest at a fixed rate and be convertible into common shares. The interest rate and initial conversion rate will be determined based on market conditions.
Additionally, B2Gold plans to enter into a one-month cash settled total return swap for up to US$50 million of shares with one of the initial purchasers. The notes will be offered exclusively to qualified institutional buyers under Rule 144A.
B2Gold Corp. (BTG) ha annunciato un'offerta di note senior convertibili non garantite, in scadenza nel 2030, con un ammontare principale complessivo di 350 milioni di dollari USA. I compratori iniziali avranno un'opzione di 15 giorni per acquistare ulteriori note per un valore di 52,5 milioni di dollari USA.
L'azienda intende utilizzare i proventi netti per il capitale circolante e scopi aziendali generali, iniziando a ridurre il saldo della sua linea di credito revolving. Le note porteranno un interesse in contante semestrale a un tasso fisso e saranno convertibili in azioni ordinarie. Il tasso d'interesse e il tasso di conversione iniziale saranno determinati in base alle condizioni di mercato.
Inoltre, B2Gold prevede di entrare in uno swap di rendimento totale cash-settled della durata di un mese, per un massimo di 50 milioni di dollari USA di azioni con uno dei compratori iniziali. Le note saranno offerte esclusivamente a investitori istituzionali qualificati ai sensi della Regola 144A.
B2Gold Corp. (BTG) ha anunciado una oferta de notas senior convertibles no garantizadas con vencimiento en 2030, con un monto principal agregado de 350 millones de dólares estadounidenses. Los compradores iniciales tendrán una opción de 15 días para comprar notas adicionales por un total de 52.5 millones de dólares estadounidenses.
La empresa planea utilizar los ingresos netos para capital de trabajo y fines corporativos generales, comenzando por pagar el saldo de su línea de crédito revolvente. Las notas llevarán un interés en efectivo semestral a una tasa fija y serán convertibles en acciones ordinarias. La tasa de interés y la tasa de conversión inicial se determinarán en función de las condiciones del mercado.
Además, B2Gold planea entrar en un swap de retorno total liquidado en efectivo de un mes por hasta 50 millones de dólares estadounidenses en acciones con uno de los compradores iniciales. Las notas se ofrecerán exclusivamente a inversores institucionales calificados bajo la Regla 144A.
B2Gold Corp. (BTG)는 2030년 만기, 총 원금 3억 5천만 달러의 상환 불가능한 전환 가능한 장기 채권을 발행한다고 발표했습니다. 초기 구매자는 추가로 5천 2백 50만 달러어치의 채권을 구매할 수 있는 15일 옵션이 있습니다.
회사는 순수한 수익금을 운영 자본과 일반 기업 용도로 사용할 계획이며, 우선 회전 신용 한도 잔액을 상환하는 데 사용할 것입니다. 이 채권은 고정 금리로 반기마다 현금 이자를 지급하며, 보통주로 전환 가능합니다. 이자율 및 초기 전환 비율은 시장 상황에 따라 결정될 것입니다.
또한, B2Gold는 초기 구매자 중 한 명과 5천만 달러 규모의 주식에 대해 현금 결제 총 수익 스왑에 들어갈 계획입니다. 이 채권은 144A 규정에 따라 적격 기관 투자자에게만 제공될 것입니다.
B2Gold Corp. (BTG) a annoncé une offre de bons de souscription convertibles non garantis arrivant à échéance en 2030, pour un montant principal total de 350 millions de dollars américains. Les acheteurs initiaux disposeront d'une option de 15 jours pour acheter des bons supplémentaires d'une valeur de 52,5 millions de dollars américains.
La société prévoit d'utiliser les produits nets pour le fonds de roulement et les besoins généraux de l'entreprise, en commençant par réduire le solde de sa ligne de crédit renouvelable. Les bons porteront un intérêt en espèces semestriel à un taux fixe et seront convertibles en actions ordinaires. Le taux d'intérêt et le taux de conversion initial seront déterminés en fonction des conditions du marché.
De plus, B2Gold prévoit de conclure un swap de rendement total réglé en espèces d'une durée d'un mois pour un maximum de 50 millions de dollars américains d'actions avec l'un des acheteurs initiaux. Les bons seront offerts exclusivement aux investisseurs institutionnels qualifiés en vertu de la règle 144A.
B2Gold Corp. (BTG) hat ein Angebot von unbesicherten Wandelschuldverschreibungen mit Fälligkeit 2030 in Höhe von insgesamt 350 Millionen US-Dollar bekannt gegeben. Die ursprünglichen Käufern haben die Option, innerhalb von 15 Tagen weitere Schuldverschreibungen im Wert von 52,5 Millionen US-Dollar zu erwerben.
Das Unternehmen plant, die Nettoerlöse für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden und zunächst den Saldo seiner revolvierenden Kreditfazilität zu reduzieren. Die Schuldverschreibungen werden halbjährlich einen festen Zinssatz in bar tragen und in Stammaktien umwandelbar sein. Der Zinssatz und der anfängliche Umwandlungskurs werden je nach Marktbedingungen festgelegt.
Darüber hinaus plant B2Gold, mit einem der ursprünglichen Käufer einen einenmonatigen, in bar abgewickelten Total Return Swap über bis zu 50 Millionen US-Dollar an Aktien abzuschließen. Die Schuldverschreibungen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A angeboten.
- Access to significant capital through $350 million note offering
- Flexibility in capital structure with convertible notes due 2030
- Additional $52.5 million potential funding through purchaser option
- Potential shareholder dilution if notes are converted to common shares
- Increased debt obligations and interest expense
- Market price volatility risk due to total return swap arrangements
Insights
B2Gold's US$350 million convertible senior notes offering represents a strategic financing move that merits careful analysis. The structure of this debt instrument - convertible notes due in 2030 with an additional US$52.5 million option - suggests a calculated approach to capital raising while managing the cost of capital.
The financing strategy reveals several key implications for investors:
- The decision to initially apply proceeds to pay down the revolving credit facility before future draws indicates a sophisticated approach to interest expense management
- The convertible structure typically offers lower interest rates compared to straight debt, potentially reducing the company's cost of capital
- The inclusion of a US$50 million total return swap arrangement is particularly noteworthy - this hedging strategy could help manage potential share price volatility during the initial offering period
From a market perspective, the timing of this offering coincides with a period of elevated gold prices, suggesting B2Gold is capitalizing on favorable market conditions. However, investors should consider the potential dilution risk if these notes are eventually converted to equity. The conversion feature essentially creates a deferred dilution scenario that needs to be factored into long-term valuation models.
The company's choice of a convertible instrument over traditional debt suggests a balanced approach between maintaining financial flexibility and managing interest costs. This type of financing is particularly relevant in the current high-interest-rate environment, where traditional debt financing costs remain elevated. The five-year term to 2030 also provides B2Gold with substantial runway for operational execution.
The market implications of this financing package are multifaceted and warrant careful consideration. The total return swap mechanism introduces an interesting dynamic that could influence short-term trading patterns. During the initial hedge establishment, likely occurring at the offering's pricing, we could see increased buying pressure on B2Gold shares. However, this effect may reverse during the swap's unwinding, potentially creating price pressure in the opposite direction.
From a market positioning perspective, B2Gold's timing aligns with several favorable factors:
- Gold prices remain relatively strong, enhancing the appeal of gold producer securities
- The convertible market has shown appetite for precious metals exposure
- Interest rates, while high, have stabilized, making this an opportune time for structured financing
The offering's reception by qualified institutional buyers will be a key indicator of market confidence in B2Gold's strategy and execution capabilities. The conversion price, when announced, will provide insights into the market's view of B2Gold's growth potential and the premium investors are willing to pay for future equity participation.
VANCOUVER, British Columbia, Jan. 22, 2025 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces that it is offering convertible senior unsecured notes due 2030 (the “Notes”) in an aggregate principal amount of US
The Company intends to use the net proceeds from the Offering to fund working capital requirements and for general corporate purposes. In order to reduce interest expense, the Company will initially apply the net proceeds to pay down the outstanding balance under the Company’s revolving credit facility (the “Revolving Credit Facility”) and then subsequently use future draws on the Revolving Credit Facility to fund such working capital requirements and for general corporate purposes.
The interest rate and the initial conversion rate of the Notes will be determined by B2Gold and the initial purchasers and will depend on market conditions at the time of pricing of the Offering. The Notes will bear cash interest semi-annually at a fixed rate and be convertible by holders into common shares of the Company (the “Shares”).
B2Gold will have the right to redeem the Notes in certain circumstances and holders will have the right to require B2Gold to repurchase their Notes upon the occurrence of certain events.
In connection with the offering of the notes B2Gold intends to enter into a cash settled total return swap with respect to up to approximately US
The Notes and the Shares issuable upon the conversion thereof have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or qualified by a prospectus in Canada. The Notes and the Shares may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration under the Securities Act. The Notes will be offered only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act). Offers and sales in Canada will be made only pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.
This news release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About B2Gold
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland.
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
Source: B2Gold Corp.
The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.
This news release contains forward-looking statements which constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward-looking Statements”). All statements included herein, other than statements of historical fact, are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements. The Forward-looking Statements in this news release include, without limitation, statements relating to the Offering, the option to purchase additional Notes, if any, the terms of the Notes, the anticipated timing for closing of the Offering, the anticipated use of proceeds and the intention to enter into the total return swap. These Forward-looking Statements are based on certain assumptions that B2Gold has made in respect thereof as at the date of this news release. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “anticipated”, “estimated” “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of B2Gold to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements. Such uncertainties and factors include, without limitation, risks relating to the need to satisfy the conditions expected to be set forth in the purchase agreement for the Notes; the need to satisfy regulatory and legal requirements with respect to the Offering; as well as those factors discussed under “Risk Factors” in B2Gold’s Annual Information Form for the fiscal year ended December 31, 2023, a copy of which can be found on the Company’s profile on the SEDAR+ website at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar. Although B2Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
B2Gold’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. B2Gold’s forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
FAQ
What is the size of B2Gold's (BTG) 2024 convertible note offering?
How will B2Gold (BTG) use the proceeds from its 2024 convertible note offering?
What is the maturity date for BTG's new convertible notes?
What is the size of B2Gold's (BTG) total return swap arrangement?
Who can purchase BTG's 2024 convertible notes offering?
