B2Gold Announces Pricing of Upsized Offering of Convertible Senior Notes
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG) has priced its offering of convertible senior unsecured notes due 2030, totaling US$400 million with an option for additional US$60 million. The notes will carry a 2.75% annual interest rate, paid semi-annually.
The initial conversion rate is set at 315.2088 common shares per US$1,000 of notes, equivalent to US$3.17 per share, representing a 35% premium over the current share price. The offering is expected to close around January 28, 2025.
The company plans to use the proceeds for working capital and general corporate purposes, initially paying down its revolving credit facility. B2Gold has also entered into a US$50 million cash settled total return swap with one of the initial purchasers, providing economic exposure to its shares for approximately one month.
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG) ha fissato il prezzo della sua emissione di obbligazioni convertibili senior non garantite con scadenza nel 2030, per un totale di 400 milioni di dollari statunitensi, con un'opzione per ulteriori 60 milioni di dollari. Le obbligazioni porteranno un tasso di interesse annuale del 2,75%, pagato semestralmente.
Il tasso di conversione iniziale è fissato a 315,2088 azioni ordinarie per ogni 1.000 dollari di obbligazioni, equivalente a 3,17 dollari per azione, rappresentando un premio del 35% rispetto al prezzo attuale delle azioni. Si prevede che l'emissione si chiuda intorno al 28 gennaio 2025.
L'azienda intende utilizzare i proventi per il capitale circolante e per scopi aziendali generali, iniziando a rimborsare la propria linea di credito revolving. B2Gold ha anche stipulato uno con uno dei primi acquirenti, fornendo esposizione economica alle sue azioni per circa un mese.
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG) ha fijado el precio de su oferta de bonos convertibles senior no garantizados con vencimiento en 2030, por un total de 400 millones de dólares estadounidenses, con una opción adicional de 60 millones de dólares. Los bonos tendrán una tasa de interés anual del 2,75%, pagada semestralmente.
La tasa de conversión inicial se establece en 315,2088 acciones ordinarias por cada 1,000 dólares de bonos, equivalente a 3,17 dólares por acción, lo que representa una prima del 35% sobre el precio actual de las acciones. Se espera que la oferta se cierre alrededor del 28 de enero de 2025.
La compañía planea utilizar los ingresos para capital de trabajo y propósitos corporativos generales, comenzando por pagar su línea de crédito revolvente. B2Gold también ha entrado en un intercambio de rendimiento total liquidado en efectivo de 50 millones de dólares con uno de los compradores iniciales, proporcionando exposición económica a sus acciones por aproximadamente un mes.
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG)는 2030년 만기 변환 가능한 선순위 무담보 채권의 가격을 4억 달러로 책정했으며, 추가로 6천만 달러의 옵션이 있습니다. 채권은 연 2.75%의 이자율을 가지며, 반기마다 지급됩니다.
초기 전환 비율은 1,000달러당 315.2088주로 설정되어 있으며, 이는 주당 3.17달러에 해당하며 현재 주가 대비 35%의 프리미엄을 나타냅니다. 이 거래는 2025년 1월 28일경에 마감될 것으로 예상됩니다.
회사는 그 수익금을 운영 자본 및 일반 기업 목적에 사용할 계획이며, 처음에는 회전 신용 시설을 상환하는 데 사용할 것입니다. B2Gold는 또한 초기 매수자 중 한 명과 5천만 달러 현금 정산 총 수익 스왑 계약을 체결하여 약 한 달간 주식에 대한 경제적 노출을 제공합니다.
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG) a fixé le prix de son émission d'obligations convertibles senior non sécurisées arrivant à échéance en 2030, pour un total de 400 millions de dollars américains, avec une option pour 60 millions de dollars supplémentaires. Les obligations porteront un taux d'intérêt annuel de 2,75%, payé semestriellement.
Le taux de conversion initial est fixé à 315,2088 actions ordinaires pour 1 000 dollars d'obligations, ce qui équivaut à 3,17 dollars par action, représentant une prime de 35 % par rapport au prix actuel des actions. La clôture de l'offre est prévue autour du 28 janvier 2025.
La société prévoit d'utiliser les produits pour le fonds de roulement et des fins générales d'entreprise, en commençant par rembourser sa facilité de crédit renouvelable. B2Gold a également conclu un swap de total return réglé en espèces de 50 millions de dollars avec l'un des premiers acheteurs, offrant une exposition économique à ses actions pendant environ un mois.
B2Gold Corp (TSX: BTO, NYSE AMERICAN: BTG) hat den Preis für sein Angebot von wandelbaren, nicht besicherten vorrangigen Anleihen mit Fälligkeit 2030 auf 400 Millionen US-Dollar festgelegt, mit einer Option für zusätzliche 60 Millionen US-Dollar. Die Anleihen werden einen jährlichen Zinssatz von 2,75% haben, der halbjährlich gezahlt wird.
Der anfängliche Umwandlungskurs ist auf 315,2088 Stammaktien pro 1.000 US-Dollar Anleihen festgelegt, was 3,17 US-Dollar pro Aktie entspricht und einen Aufschlag von 35% auf den aktuellen Aktienkurs darstellt. Das Angebot wird voraussichtlich um den 28. Januar 2025 abgeschlossen.
Das Unternehmen plant, die Erlöse für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden, wobei zunächst seine revolvierende Kreditlinie zurückgezahlt wird. B2Gold hat auch einen Barabkommen über einen Total Return Swap über 50 Millionen US-Dollar mit einem der ursprünglichen Käufer abgeschlossen, was eine wirtschaftliche Exposition gegenüber seinen Aktien für etwa einen Monat bietet.
- Secured significant funding of US$400 million with potential for additional US$60 million
- Relatively low interest rate of 2.75% for the convertible notes
- 35% conversion premium above current share price, reducing potential dilution
- Potential future dilution if notes are converted to shares
- Additional debt burden on the company's balance sheet
- Interest expenses will increase due to the new notes
Insights
B2Gold's US$400 million convertible notes offering, potentially expanding to US$460 million, represents a strategic financial maneuver with several notable implications. The 2.75% interest rate is particularly competitive in the current high-rate environment, indicating strong market confidence in BTG's creditworthiness.
The conversion price of US$3.17 with a 35% premium demonstrates management's optimistic outlook on future share appreciation while protecting against immediate dilution. This premium sits at the higher end of the typical 20-40% range for mining sector convertibles, suggesting robust negotiating position.
The dual-use strategy for proceeds - initially paying down the revolving credit facility before future draws - is financially astute. This approach minimizes interest expenses while maintaining flexibility for future capital deployment. The US$50 million total return swap arrangement provides a sophisticated hedge against potential share price volatility during the initial offering period.
This financing structure offers several advantages:
- Lower immediate interest burden compared to traditional debt
- Enhanced financial flexibility through the revolving credit facility strategy
- Protection against dilution through the premium conversion price
- Improved debt maturity profile with 2030 duration
The timing aligns with the broader trend of mining companies securing longer-term financing while maintaining operational flexibility. This move strengthens B2Gold's balance sheet without immediately impacting the shareholding structure, positioning the company well for potential growth initiatives or market uncertainties.
VANCOUVER, British Columbia, Jan. 23, 2025 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) announces that it has priced its previously announced offering of convertible senior unsecured notes due 2030 (the “Notes”) in an aggregate principal amount of US
The Notes will bear cash interest semi-annually at a rate of
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.
The Offering is expected to close, subject to customary closing conditions, on or about January 28, 2025.
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.
In connection with the Offering, B2Gold entered into a cash settled total return swap with respect 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.
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 certain statements related to 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
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