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Franco-Nevada Announces US$ 550 Million Bought Deal Financing
TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX:FNV)(NYSE:FNV) is pleased to announce that
About this update from Franco-nevada Corporation
[{"type":"text","content":" TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Franco-Nevada Corporation (\"Franco-Nevada\" or the \"Company\") (TSX:FNV)(NYSE:FNV) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets, and Scotiabank, pursuant to which they have agreed to purchase, on a bought deal basis, 11,500,000 common shares of Franco-Nevada at a price of US$47.85 per common share (the \"Offering Price\"), for aggregate gross proceeds to Franco-Nevada of approximately US$550 million (the \"Offering\"). The underwriters will also have the option, exercisable in whole or in part, at any time for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,725,000 common shares at the Offering Price to cover over-allotments, if any. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to Franco-Nevada will be approximately US$663 million. The Company plans to use the net proceeds of the Offering for the funding of Franco-Nevada's acquisition of a precious metals stream with reference to production from Glencore plc's (\"Glencore\") Antapaccay Mine located in Peru, as announced on February 10, 2016 (the \"Antapaccay Transaction\"), and the balance will be added to the working capital of the Company and used for further investments and other general corporate purposes. The completion of the Offering is not conditional upon the successful completion of the Antapaccay Transaction. The Company expects to file a preliminary prospectus supplement to its existing base shelf prospectus on or about February 10, 2016 and intends to file a final prospectus supplement to its existing base shelf prospectus on or about February 11, 2016, in each case with the securities regulatory authorities in each of the provinces and territories in Canada and the U.S. Securities and Exchange Commission (\"SEC\"). The Offering is scheduled to close on or about February 19, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange, the New York Stock Exchange and the securities regulatory authorities. The Company has filed a registration statement (including the existing base shelf prospe...