Royal Gold Announces the Closing of Its 7.25% Mandatory Convertible Preferred Stock For Gross Proceeds of $115 Million

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[{"type":"text","content":"\n\n\n\nDENVER, Nov. 9 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL) the\nleading publicly-traded precious metals royalty company, today announced the\nclosing of its public offering of 1.0 million shares of its 7.25% Mandatory\nConvertible Preferred Stock ("Preferred Stock") for $100.00 per share. The\nunderwriters also exercised their option to purchase an additional 150,000\nshares of the Preferred Stock to cover over-allotments.\n\n\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\npay dividends in cash, common stock or a combination of cash and common stock.\nThe first dividend payment date will be February 15, 2008.\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. acted as the sole book-running manager and HSBC acted\nas co-manager for the Preferred Stock offering.\n\n\nNet proceeds from the Preferred Stock offering are estimated to be\napproximately $111.15 million. Royal Gold currently intends to use the net\nproceeds from this offering for acquisitions of additional royalty interests\nas further described in the prospectus supplement for the offering.\n\n\nThe Preferred Stock was sold pursuant to Royal Gold's effective shelf\nregistration statement previously filed with the Securities a...

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