St Andrew plans new offering

To help solve its financial problems, St Andrew Goldfields (TSE) is planning an offering of convertible preferred shares in Switzerland.

The company said it has appointed Banque Indosuez of Geneva and given it the mandate to structure and launch a domestic issue to offer convertible preferred shares for St Andrew’s outstanding 7-year 25-million Swiss franc convertible bond issue (about $22 million) bearing an annual 5.75% interest rate. St Andrew brought the bond issue to the market in June, 1988.

The company said the effect of converting its long-term debt into shares will improve the net shareholders equity and restore some of the equity lost because of the writedown reported for the 1990 fiscal year.

The new offering is expected to incorporate the coupon which was due June 6. The company said shareholders will be asked to approve the new offering at a special meeting.