An offering of $200 million(US) principal amount of copper interest- indexed senior subordinated notes due 1998 is being made by Magma Copper (NASDAQ). Interest on the copper notes will be indexed to the Comex (New York Commodity Exchange) copper price and will be payable quarterly Feb 15, May 15, Aug 15 and Nov 15 (commencing Feb 15, 1989) and will bear interest through May 15, 1989, at 18% per annum. Thereafter, the interest rate will range from 21% at average Comex prices of $2 per lb and above, to 12% at average prices of 80 per lb and below.
The copper notes are redeemable, subject to certain conditions, on or after Nov 15, 1991. In addition, Magma must offer to purchase 15% of the notes beginning Nov 15, 1992, and each Nov 15 thereafter at 100% of principal amount.
Drexel Burnham Lambert is the sole manager of the offering.
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