Hochschild to raise $250m to fund an acquisition spree
HOCHSCHILD, the FTSE 250 Latin American focused precious metals miner, is set to raise $250m (£157m) through an equity raising, it said yesterday, and will use the cash to make acquisitions.
It will place 30.38m shares to raise $150m, while the remaining $100m will come from offering senior unsecured convertible bonds set to mature in 2014.
The shares issued make up 9.9 per cent of the current share capital of Hochschild. It has not detailed the price at which they will be issued.
The convertible bonds are set to carry a coupon which will be between 5.75 per cent and 6.5 per cent.
The bond will convert at a premium of between 30 per cent and 35 per cent of the issued stock’s share price.
“We are well-positioned to benefit from further investment in our asset base as well as further selective M&A opportunities,” chief executive Miguel Aramburu said.
Hochschild added it was on course to hit its full year production target of 28m attributable silver equivalent ounces, after third quarter production of 7.5m attributable silver equivalent ounces.
The miner said it also planned to use some of the proceeds to pay off $85m of its $200m syndicated loan facility. Some of the cash will also be used to bump up the firm’s stake in Lake Shore Gold.