Quoting the press release:
Gran Colombia Gold Corp. (TSX: GCM) announced today that it has successfully priced an oversubscribed offering of US$300 million in senior unsecured notes due 2026 at a coupon rate of 6.875% (the “2026 Notes”) pursuant to Rule 144A and Regulation S of the U.S. Securities Act of 1933, as amended, (the “Act”), with closing expected to occur on or about August 9, 2021.
The proceeds from the 2026 Notes will be used to: (i) to fund the development of our Guyana operations, (ii) to prepay the remaining Gold-Linked Notes, and (iii) for general corporate purposes. The 2026 Notes have been assigned a rating of B+ by Fitch Ratings and a rating of B+ by S&P Global Ratings.
That’s a lot of money they raised, and in unsecured form! It’s quite the turnaround from years ago when they had to struggle to raise capital through the gold-linked notes (TSX: GCM.NT.U).
It looks like the remaining US$18 million of notes will finally get called out at 104.13. GCM has to provide 30 days of notice of redemption and this will likely happen once the deal closes.
(Update, August 9, 2021: This redemption notice occurred, slated for September 9, 2021).
Do I read the press release correctly that poor little retail investors like us won’t be able to buy this fixed income vehicle at a juicy 6.8% – already snapped up by institutions?
Of course not!
Sorry for posting here but comments on the AFN posting seemed to be turned off. Anyways…wow down about about 35% in 3 months…I bought more at 27.75. What’s your take Sacha…Earnings Call Transcript didn’t seem too bad….is it all about the lawsuits now?
I’m going to be writing about this in a future post when I get some further time.
Looking forward to it…Thanks.
just found out same day as this US$ debenture being redeemed so is my Tricon Residential 5.25% US$ debenture being redeemed. Mind you can convert now and buy the common at a discount to current value
Safe yield becomes harder and harder to come by with every redemption.