Holders of Echo Bay Mines’ (TSE) Swiss Franc 3.875% bonds, due 1996, will be able to convert the bonds into common shares of the gold producer until Oct. 28.
At the option of the bondholders, each of the SFr5,000 ($3,988) bonds can be converted into 340 common shares. Any gold warrants attached to the bonds can also be converted into shares.
A total of SFr110 million of bonds, with attached gold warrants to buy six troy ounces of gold at $560 per oz. until September, 1991, were issued in October, 1986.
Those choosing to convert will receive full coupon interest on the bonds through to Oct. 28, regardless of the conversion date.
Echo Bay says the conversion is designed to reduce the company’s debt and offer bondholders a premium to the recent market value of the bonds.
Just under 7.5 million shares would have to be issued if all the bonds were converted.
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