Business
Gold Reserve Inc. announces pricing of concurrent cross-border public offerings
Gold Reserve Inc. announces pricing of concurrent cross-border public offerings.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, May 15 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)\nannounced today that it has entered into underwriting agreements in connection\nwith concurrent cross-border public offerings of US$90,000,000 aggregate\nprincipal amount of its 5.50% Senior Subordinated Convertible Notes due 2022\n("Convertible Notes") and 12,800,000 Class A common shares ("Common Shares")\nat US$5.80 per share (Cdn$6.42 per share) for aggregate gross proceeds to the\nCompany of US$164,240,000. Aggregate net proceeds from the offerings are\nexpected to be approximately US$154,775,000, after deducting underwriting fees\nand estimated offering expenses.\n\n\nThe Company has also granted to the underwriters an option for a period\nof 13 days to purchase up to an additional US$13,500,000 principal amount of\nits Convertible Notes and an option for a period of 30 days to purchase up to\nan additional 1,920,000 Common Shares, in each case, to cover over-allotments,\nif any.\n\n\nThe Convertible Notes are being offered and sold at their stated\nprincipal amount (US$1,000 per Convertible Note) and will have a semi-annual\ncash interest coupon of 5.50% per year. Each US$1,000 principal amount of\nConvertible Notes will be convertible at the option of the holder into 132.626\nCommon Shares, subject to adjustment, representing an initial conversion price\nof US$7.54.\n\n\nThe closing of the offerings is expected to occur on May 18, 2007.\nNeither offering is contingent on the completion of the other.\n\n\nJ.P. Morgan Securities Inc. and RBC Capital Markets are acting as joint\nbook running managers for the offerings with Cormark Securities Inc. acting as\nco-manager.\n\n\nThe Company intends to use the net proceeds from the offerings to fund\nconstruction activities, equipment purchases and ongoing development of its\nBrisas project.\n\n\nCopies of the prospectuses relating to the Convertible Notes and the\nCommon Shares may be obtained from the underwriters or their respective U.S.\nor Canadian affiliates as follows: J.P. Morgan Securities Inc. at National\nStatement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level,\nBrooklyn, NY 11245, telephone: 718-242-8002; RBC Capital Markets - in Canada,\ncall 416-842-5345, in the U.S., RBC Capital Markets Corporation, Attention:\nProspectus Department, One Liberty Plaz...