St Andrew Goldfields (TSE) has reached an agreement with Banque Indosuez of Geneva Switzerland to offer 14.4 million newly created preferred shares in exchange for $20.9 million in 5.75% Swiss franc bonds.
The non-voting preferreds are to be convertible into common shares of St Andrew on a one-for-one basis.
St Andrew’s 15.2 million issued common shares traded recently at 35 cents, and if all bondholders accept the preferreds, the total value of the preferred shares issued would be about $5.1 million.
The preferred shares are to be redeemable at the option of St Andrew at $1.40 each. They would automatically be converted after June 5, 1995, or if St Andrew shares trade above $1.40 each for a period of up to 30 days.
The non-cumulative preferred shares will pay an annual dividend of four cents.
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