Free Writing Prospectus Filed pursuant to Rule 433 Registration No. 333-130711 Dated March 12, 2007 |
Title of Securities: | 3.25% Convertible Senior Notes due 2028 (the Notes) |
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Aggregate Principal Amount Offered: | $200,000,000 |
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Over-allotment Option: | $ 30,000,000 |
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Offer price: | 100.000% of principal amount |
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Use of proceeds: | Coeur dAlene Mines Corporation intends to use the net proceeds from
this offering to complete the construction of the San Bartolomé
silver project in Bolivia and fund construction of the Palmarejo
silver/gold project in Mexico. Any additional remaining proceeds
may be used to repay borrowings under our bridge loan facility and
for general corporate purposes |
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Interest payment dates: | March 15 and September 15 of each year, commencing September 15, 2008 |
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Maturity: | March 15, 2028 |
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Ranking: | The Notes will be our senior unsecured obligations and will rank
pari passu with all of our other senior unsecured debt and senior to
any of our future debt subordinated to the Notes. The Notes will be
effectively subordinated to all present and future debt and other
obligations of our subsidiaries. In addition, the Notes are
effectively subordinated to all of our present and future secured
debt to the extent of the collateral securing that debt |
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Coupon: | 3.25% |
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Principal amount per note: | $1,000 |
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Closing Price (March 12, 2008) | $4.37 |
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Conversion Price (approximately): | Initially $5.68 per share of common stock |
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Conversion Rate Per Note | Initially 176.0254 |
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Optional Redemption: | On or after March 22, 2015, Coeur dAlene Mines Corporation may
redeem the Notes for cash as a whole at any time, or from time to
time in part, at a redemption price of 100% of the principal amount
of the Notes to be redeemed plus accrued and unpaid interest up to,
but not including, the redemption date |
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Repurchase of Notes at Holders Option: | Holders have the right to require Coeur dAlene Mines Corporation to
purchase all or a portion of their Notes on March 15, 2013, March
15, 2015, March 15, 2018 and March 15, 2023 for a purchase price
equal to 100% of the principal amount of the Notes, plus accrued and
unpaid interest, up to but not including the date of repurchase. In
lieu of paying cash for the repurchase price, Coeur dAlene Mines
Corporation may elect to pay shares of common stock or a combination
of cash and shares of common stock |
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Repurchase upon a Fundamental Change: |
If a fundamental change occurs, holders will have the option to
require Coeur dAlene Mines Corporation to purchase all or any part
of their Notes at a purchase price equal to 100% of the principal
amount of the notes, plus accrued and unpaid interest, payable in
cash |
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Qualifying Fundamental Change Protection: |
Adjustment to the applicable conversion rate upon a qualifying
fundamental change (per attached table) |
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Registration: | The Notes are registered under Coeur dAlene Mines Corporations
shelf registration statement |
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Net Proceeds: | Approximately $193.2 million, after deducting underwriters
discounts, commissions and estimated offering expenses (or
approximately $222.3 million after exercising the over-allotment
option in full) |
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Sole Book-Running Manager: | Deutsche Bank Securities Inc. |
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Co-Manager: | JPMorgan |
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Trade date: | March 13, 2008 |
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Settlement date: | March 18, 2008 |
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CUSIP / ISIN | 192108AR9 / US192108AR96 |
Effective Date | Stock Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 4.37 | $ | 4.50 | $ | 4.75 | $ | 5.00 | $ | 5.25 | $ | 5.50 | $ | 6.00 | $ | 7.00 | $ | 8.00 | $ | 9.00 | $ | 10.00 | $ | 12.50 | $ | 15.00 | $ | 20.00 | |||||||||||||||||||||||||||||
March 18, 2008 |
52.80 | 50.71 | 45.32 | 40.62 | 36.50 | 32.87 | 26.81 | 18.14 | 12.42 | 8.52 | 5.80 | 1.96 | 0.36 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2009 |
52.80 | 52.80 | 47.70 | 42.62 | 38.19 | 34.29 | 27.82 | 18.62 | 12.63 | 8.59 | 5.79 | 1.91 | 0.33 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2010 |
52.80 | 52.80 | 49.73 | 44.24 | 39.45 | 35.27 | 28.36 | 18.67 | 12.45 | 8.34 | 5.53 | 1.73 | 0.25 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2011 |
52.80 | 52.80 | 50.81 | 44.87 | 39.73 | 35.26 | 27.96 | 17.91 | 11.65 | 7.59 | 4.90 | 1.37 | 0.12 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2012 |
52.80 | 52.80 | 49.85 | 43.50 | 38.07 | 33.41 | 25.92 | 15.95 | 9.98 | 6.26 | 3.87 | 0.89 | 0.01 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2013 |
52.80 | 51.17 | 44.27 | 38.39 | 33.36 | 29.03 | 22.09 | 12.95 | 7.63 | 4.44 | 2.49 | 0.31 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2014 |
52.80 | 48.23 | 40.37 | 33.77 | 28.22 | 23.58 | 16.41 | 7.85 | 3.65 | 1.58 | 0.55 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
March 15, 2015 |
52.80 | 46.17 | 34.48 | 23.95 | 14.43 | 5.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2007 | ||||||||
Actual | As Adjusted | |||||||
(in thousands) | ||||||||
Cash, cash equivalents and short-term investments |
$ | 151,710 | $ | 344,870 | ||||
Current portion of long-term debt and capital lease obligations |
$ | 30,831 | $ | 30,831 | ||||
1.25% Convertible Senior Notes due January 2024 |
$ | 180,000 | $ | 180,000 | ||||
Obligations under capital leases |
$ | 23,661 | $ | 23,661 | ||||
New 3.25% Convertible Senior Notes due 2028(1) |
$ | | $ | 200,000 | ||||
Total long-term debt |
$ | 234,492 | $ | 434,492 | ||||
Shareholders equity: |
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Common Stock, par value $1.00 per share; authorized
750,000,000 shares; 551,512,230 shares issued and outstanding
(1,059,211 shares held in treasury)(2) |
551,512 | 551,512 | ||||||
Additional paid in capital |
1,607,737 | 1,607,737 | ||||||
Accumulated deficit |
(419,331 | ) | (419,331 | ) | ||||
Shares held in treasury |
(13,190 | ) | (13,190 | ) | ||||
Accumulated other comprehensive income |
639 | 639 | ||||||
Total shareholders equity |
$ | 1,727,367 | $ | 1,727,367 | ||||
Total capitalization |
$ | 1,961,859 | $ | 2,161,859 | ||||
(1) | Assumes no exercise of the underwriters over-allotment option. | |
(2) | Does not include 23,684,211 shares issuable upon conversion of our 1.25% Convertible Senior Notes due 2024, 6,004 shares reserved for issuance under our executive compensation plan and 759,435 shares reserved for issuance under our director compensation plan. |