i-80 Announces Proposed Amendments to its Convertible Debentures
i-80 Gold Corp (TSX: IAU, NYSE: IAUX) has reached an agreement with convertible debenture holders to amend the terms of its $65 million convertible debentures as part of its second phase recapitalization plan. The amendments include three key changes: 1) Modifying the conversion price for outstanding and accrued interest to reflect a 15% discount to the 5-day volume weighted average price on TSX; 2) Removing the Company's right to grant pari-passu security against McCoy-Cove, making debenture holders senior secured on this asset; and 3) Adding a new redemption right allowing the Company to redeem debentures at a 104% premium plus accrued interest.
These changes follow the October 15, 2024 appointment of a debenture holders' committee representing approximately 66 2/3% of the principal amount. The Company expects to complete its recapitalization plan by the end of Q1 2025.
i-80 Gold Corp (TSX: IAU, NYSE: IAUX) ha raggiunto un accordo con i titolari di obbligazioni convertibili per modificare i termini delle sue obbligazioni convertibili da 65 milioni di dollari nell'ambito del suo piano di ricapitalizzazione fase due. Le modifiche includono tre cambiamenti chiave: 1) Modifica del prezzo di conversione per il capitale in essere e per gli interessi accumulati, in modo da riflettere uno sconto del 15% rispetto al prezzo medio ponderato per volume su 5 giorni su TSX; 2) Rimozione del diritto della Società di concedere garanzie pari-passu su McCoy-Cove, rendendo i titolari di obbligazioni senior garantiti su questo asset; e 3) Aggiunta di un nuovo diritto di riscatto che consente alla Società di riscattare le obbligazioni con un premio del 104% più gli interessi accumulati.
Queste modifiche seguono la nomina del 15 ottobre 2024 di un comitato di titolari di obbligazioni che rappresenta circa il 66 2/3% dell'importo principale. La Società prevede di completare il suo piano di ricapitalizzazione entro la fine del primo trimestre del 2025.
i-80 Gold Corp (TSX: IAU, NYSE: IAUX) ha llegado a un acuerdo con los tenedores de obligaciones convertibles para modificar los términos de sus obligaciones convertibles de 65 millones de dólares como parte de su plan de recapitalización de segunda fase. Las enmiendas incluyen tres cambios clave: 1) Modificación del precio de conversión para el capital pendiente y los intereses acumulados para reflejar un descuento del 15% al precio medio ponderado por volumen de 5 días en TSX; 2) Eliminación del derecho de la Compañía para otorgar garantías pari-passu contra McCoy-Cove, haciendo que los tenedores de obligaciones sean asegurados con prioridad sobre este activo; y 3) Adición de un nuevo derecho de redención que permite a la Compañía redimir las obligaciones con una prima del 104% más los intereses acumulados.
Estos cambios siguen la designación del 15 de octubre de 2024 de un comité de tenedores de obligaciones que representa aproximadamente el 66 2/3% del monto principal. La Compañía espera completar su plan de recapitalización para finales del primer trimestre de 2025.
i-80 Gold Corp (TSX: IAU, NYSE: IAUX)는 6500만 달러 규모의 전환사채 조건을 수정하기 위해 전환사채 보유자와 합의에 도달했습니다. 이는 두 번째 단계의 재자본화 계획의 일환으로 이루어진 것입니다. 수정 사항에는 세 가지 주요 변경 사항이 포함됩니다: 1) TSX에서 5일간의 거래량 가중 평균 가격의 15% 할인에 대응하는 미발행 및 누적 이자에 대한 전환 가격 수정; 2) McCoy-Cove에 대한 동등한 담보를 제공할 권리 삭제, 이를 통해 전환사채 보유자가 해당 자산에 대해 우선 담보를 가지게 됨; 3) 회사가 104% 프리미엄과 누적 이자를 더하여 전환사채를 상환할 수 있는 새로운 상환 권리 추가.
이 변화는 2024년 10월 15일에 약 66 2/3%의 원금 금액을 대표하는 전환사채 보유자 위원회가 임명된 후 이루어졌습니다. 회사는 2025년 첫 분기 말까지 재자본화 계획을 완료할 것으로 예상하고 있습니다.
i-80 Gold Corp (TSX: IAU, NYSE: IAUX) a conclu un accord avec les détenteurs d'obligations convertibles pour modifier les conditions de ses obligations convertibles de 65 millions de dollars dans le cadre de son plan de recapitalisation de seconde phase. Les modifications comprennent trois points clés : 1) Modification du prix de conversion pour le capital en circulation et les intérêts accumulés afin de refléter une remise de 15% par rapport au prix moyen pondéré des volumes sur 5 jours à la TSX ; 2) Suppression du droit de la société d'accorder des garanties pari passu sur McCoy-Cove, rendant les détenteurs d'obligations prioritaires sur cet actif ; et 3) Ajout d'un nouveau droit de rachat permettant à la société de racheter des obligations avec une prime de 104% plus les intérêts accumulés.
Ces changements font suite à la nomination, le 15 octobre 2024, d'un comité de détenteurs d'obligations représentant environ 66 2/3% du montant principal. La société prévoit de terminer son plan de recapitalisation d'ici la fin du premier trimestre 2025.
i-80 Gold Corp (TSX: IAU, NYSE: IAUX) hat eine Vereinbarung mit den Inhabern von wandelbaren Anleihen getroffen, um die Bedingungen seiner 65 Millionen Dollar schweren wandelbaren Anleihen als Teil seines Rekapitalisierungsplans in der zweiten Phase zu ändern. Die Änderungen umfassen drei wesentliche Punkte: 1) Anpassung des Umwandlungspreises für ausstehende und aufgelaufene Zinsen, um einen Rabatt von 15% auf den 5-tägigen volumengewichteten Durchschnittspreis an der TSX widerzuspiegeln; 2) Entzug des Unternehmensrechts, pari-passu Sicherheiten gegen McCoy-Cove zu gewähren, was die Anleihehalter bei diesem Vermögenswert in eine vorrangige gesicherte Position bringt; und 3) Hinzufügen eines neuen Rückkaufsrechts, das es dem Unternehmen ermöglicht, Anleihen zu einem Aufpreis von 104% zuzüglich aufgelaufener Zinsen einzulösen.
Diese Änderungen folgen der Ernennung eines Ausschusses der Anleiheinhaber am 15. Oktober 2024, der etwa 66 2/3% des Nennbetrags vertritt. Das Unternehmen erwartet, dass es seinen Rekapitalisierungsplan bis Ende des ersten Quartals 2025 abschließen wird.
- New redemption flexibility allows company to better execute its recapitalization plan
- Agreement reached with majority debenture holders (66 2/3%) indicates strong stakeholder support
- Company must offer 15% discount on share conversion price
- Required to pay 104% premium for cash redemption of debentures
- Reduced flexibility in securing additional funding against McCoy-Cove asset
Insights
This debt restructuring announcement represents a critical strategic move for i-80 Gold. The proposed amendments to the
1. The new conversion price mechanism, tied to a
2. The removal of pari-passu security rights on McCoy-Cove strengthens the debenture holders' position as senior secured creditors, effectively creating a cleaner capital structure but potentially limiting future financing flexibility.
3. The introduction of a
These amendments indicate the company is actively managing its debt obligations while preserving operational flexibility. The timing, aligned with their Q1 2025 recapitalization target, suggests a structured approach to balance sheet optimization.
The agreement's legal framework reveals sophisticated debt restructuring mechanics. The appointment of a Committee by
The waiver of an event of default is particularly noteworthy, as it indicates proactive resolution of compliance issues. The modification of security interests regarding McCoy-Cove represents a material change in creditor rights and collateral structure, potentially affecting the company's future borrowing capacity and debt hierarchy.
First Step in the Second Phase of Recapitalization Plan
On February 22, 2023, the Company closed a private placement offering of
On October 15, 2024, debenture holders representing approximately 66 2/
Pursuant to the Agreement, the Company and the Investors have agreed on a series of amendments to address certain requests of debenture holders, as well as to address a Company request to facilitate its previously disclosed recapitalization plan which it anticipates completing by the end of the first quarter of 2025. The Company and the Investors have agreed to submit to the Committee, for approval, three separate amendments to the Indenture.
The first amendment involves changing the conversion price applicable to the noteholders' conversion of outstanding and accrued interest on the Convertible Debentures to equal the volume weighted average price of i-80 Gold common shares on the Toronto Stock Exchange ("TSX") during the five trading days immediately preceding the date the Convertible Debenture holders make such election, less a discount of
The second amendment removes the Company's right to grant security on a pari-passu basis against McCoy-Cove, leaving Convertible Debenture holders as senior secured on McCoy-Cove with any additional debt subordinated.
The third amendment provides for a new redemption right of the Convertible Debentures, allowing the Company to redeem them for cash at its election at a
The amendments to the Indenture remain subject to receipt of the approval of the Committee, the TSX and the NYSE American, as applicable. Additionally, pursuant to the terms of the Indenture, a supplemental indenture to the Indenture will be entered into by the Company and the Trustee to reflect the proposed amendments.
"We are pleased to announce these amendments with debenture holders' representatives. This agreement is a win-win for both parties, as debenture holders were seeking adjustments to the existing conversion option and security position and i-80 Gold was pursuing greater flexibility in executing on its recapitalization plan. On December 31, 2024, i-80 Gold announced the completion of the first phase of its recapitalization plan with the deferral of its gold and silver deliveries. Today's announcement marks the first step in the second phase of our plan to recapitalize the Company and unlock the value of our high-grade gold projects in
ABOUT i-80 GOLD CORP.
i-80 Gold Corp. is a
FORWARD LOOKING INFORMATION
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, timing and ability to obtain required approval of the Committee, TSX and NYSE American, as well as the expected timing, completion and success of the Company's recapitalization plan including its ability to complete the restructuring of the existing debt and provide sufficient capital to develop the Company's assets, as well as the Company's ability to develop, operate and produce high grade gold from its current projects in the future. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labor unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR+ at www.sedarplus.ca.
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SOURCE i-80 Gold Corp
FAQ
What are the key amendments to IAUX's convertible debentures announced in January 2025?
When does i-80 Gold (IAUX) expect to complete its recapitalization plan?
What is the total principal amount of IAUX's convertible debentures affected by these amendments?
How will the new conversion price be calculated for IAUX's convertible debentures?
What percentage of IAUX debenture holders approved the committee formation?
