Royal Gold Announces Pricing of Mandatory Convertible Preferred Stock Offering

About this update from Red Lake Gold Inc

[{"type":"text","content":"\n\n\n\nDENVER, Nov. 6 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD) (TSE: RGL) the\nleading publicly-traded precious metals royalty company, today announced that\nit has set the price for the public offering of 1,000,000 shares of its 7.25%\nmandatory convertible preferred stock ("Preferred Stock") at $100 per share. \nThe Preferred Stock will pay, when declared by the Board of Directors,\ndividends at a rate of 7.25% per annum, payable quarterly. Royal Gold will pay\ndividends in cash, common stock or a combination of cash and common stock. \nThe first dividend payment date will be February 15, 2008. The underwriters\nhave an option to purchase from Royal Gold up to an additional 150,000 shares\nof Preferred Stock to cover over-allotments, if any.\n\n\nThe estimated net proceeds to Royal Gold from the Preferred Stock\noffering (assuming the exercise in full of the underwriters' over-allotment\noption) are expected to be approximately $111.15 million. Royal Gold\ncurrently intends to use the net proceeds from this offering for acquisitions\nof additional royalty interests as further described in the prospectus\nsupplement for the offering.\n\n\nEach share of the Preferred Stock will automatically convert on November\n15, 2010, into between approximately 2.8 and 3.4 shares of Royal Gold common\nstock if not converted earlier. The conversion rates will be subject to\nanti-dilution adjustments in certain circumstances. Holders may elect to\nconvert at any time prior to November 15, 2010, at a conversion rate equal to\n2.8335 shares of common stock for each share of Preferred Stock, subject to\nadjustments. Royal Gold may cause the conversion of all of the shares of\nPreferred Stock at its option at any time on or prior to May 15, 2008, unless\nit has completed a material transaction involving the acquisition of assets or\na business with a purchase price of $100 million or more on or prior to that\ndate. The holders of the Preferred Stock may also convert their shares into\ncommon stock in connection with certain cash acquisitions involving Royal\nGold. We have applied for the Preferred Stock to be listed on the NASDAQ\nGlobal Select Market under the ticker symbol "RGLD P."\n\n\nMerrill Lynch & Co. is acting as the sole book-running manager and HSBC\nis acting as co-manager for the mandatory convertible preferre...

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