Market Overview

From Earlier: Royal Gold Prices $325 Million of Senior Convertible Notes


Royal Gold, Inc. (NASDAQ: RGLD) today announced that it has priced an underwritten public offering of $325 million aggregate principal amount of convertible senior notes due 2019. In addition, Royal Gold has granted the underwriters a 30-day over-allotment option to purchase up to an additional $45 million aggregate principal amount of notes. The offering is expected to close on June 20, 2012, subject to customary closing conditions.

The notes will be convertible by the holders beginning on March 15, 2019, or earlier upon the occurrence of certain events. The notes will be convertible at an initial conversion rate of 9.4955 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $105.31 per share. The initial conversion price represents a premium of 35% to the $78.01 per share closing price of Royal Gold's common stock on the NASDAQ Global Select Market on June 14, 2012.

The conversion rate will be subject to adjustment upon certain events, but will not be adjusted for accrued and unpaid interest. Upon conversion, the notes may be settled, at Royal Gold's election, in cash, shares of Royal Gold's common stock, or a combination of cash and shares of Royal Gold's common stock. Royal Gold may redeem some or all of the notes for cash under certain circumstances on or after June 15, 2015.

Posted-In: News Offerings


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