What was the main purpose of the share and note offerings?

The primary purpose of these offerings was to finance Newmont's previously announced acquisition of AngloGold Ashanti Australia Limited's interest in the Boddington project in Western Australia, as well as to fund additional capital expenditures expected from this increased ownership. Any remaining proceeds will be used for general corporate purposes.

How much capital did Newmont raise in total from these offerings?

Newmont raised approximately $1.233 billion in net proceeds from the sale of its common stock and approximately $503.6 million in net proceeds from the sale of its convertible senior notes, for a combined total of roughly $1.737 billion in net proceeds.

What are the key terms of the 3.00% convertible senior notes due 2012?

The notes mature on February 15, 2012, and bear interest at 3.00% per year, payable semi-annually. They are convertible into cash and shares of Newmont's common stock under specific conditions, including stock price performance, trading price of the notes, and upon specified corporate transactions. The initial conversion rate is 21.6216 shares per $1,000 principal amount, equivalent to a conversion price of about $46.25 per share.

What is the financial obligation represented by these new securities?

The sale of common stock represents an equity offering, increasing the number of outstanding shares. The convertible senior notes represent a debt obligation. They are general unsecured obligations of Newmont, ranking senior in right of payment to any future debt expressly subordinated to them and equally with existing and future unsecured, unsubordinated indebtedness. They are effectively junior to secured debt and debt of non-guarantor subsidiaries.

NEM/NEMCL 8-K: Financial Events

Summary

Newmont Mining Corporation (NEM) filed an 8-K on February 3, 2009, to report the successful closing of two significant financing events. The company sold 34,500,000 shares of common stock at $37.00 per share and $517.5 million in aggregate principal amount of 3.00% convertible senior notes due 2012. These offerings generated substantial net proceeds, approximately $1.233 billion from the stock sale and $503.6 million from the notes, after accounting for underwriting discounts and expenses.

Key Highlights

1Newmont completed a public offering of common stock and convertible senior notes on February 3, 2009.
2The company raised approximately $1.233 billion in net proceeds from the sale of 34,500,000 shares of common stock at $37.00 per share.
3An additional $503.6 million in net proceeds was raised from the sale of $517.5 million in aggregate principal amount of 3.00% convertible senior notes due 2012.
4The net proceeds are primarily intended to finance the acquisition of AngloGold Ashanti Australia Limited's interest in the Boddington project and related capital expenditures.
5If the Boddington acquisition does not close, proceeds will be used for general corporate purposes.
6The 3.00% convertible senior notes due 2012 are general unsecured obligations of Newmont and are convertible under specific conditions, including stock price triggers and corporate transactions.
7The notes mature on February 15, 2012, and carry an initial conversion rate equivalent to approximately $46.25 per share.

NEWMONT Corp /DE/ 8-K Report, Financial Obligation (Feb 3, 2009)

Summary

Key Highlights

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