Issue date : September 21, 2012
Issue price : US $ 100
Face value at time of issue : US $ 650 million
Coupon : 6.75%
Callable Date : October 1, 2016
Maturity Date : October 1, 2020
Rating : B2 (Moody’s), and B (S&P) as of August 31, 2015
Rank : Senior Unsecured Notes
On September 21, 2012, the Company issued at face value $ 650 million of senior unsecured notes (“Notes”) with an interest rate of 6.75% per annum. The Notes are denominated in U.S. dollars and mature on October 1, 2020. Interest is payable in arrears in equal semi-annual installments on April 1 and October 1.
Except as noted below, the Notes are not redeemable, in whole or part, by the Company until October 1, 2016. On and after October 1, 2016, the Company may redeem the Notes, in whole or in part, at the relevant redemption price (expressed as a percentage of the principal amount of the Notes) and accrued and unpaid interest on the Notes up to the redemption date. The redemption price for the Notes during the 12 month period beginning on October 1 of each of the following years is: 2016 - 103.375%; 2017 - 101.688%; and 2018 and thereafter - 100%.
Prior to October 1, 2016, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount of the Notes plus a “make-whole” premium for accrued and unpaid interest.
Prior to October 1, 2015, using the cash proceeds from an equity offering the Company may redeem up to 35% of the original aggregate principal amount of the Notes at a redemption price equal to 106.750% of the aggregate principal amount thereof, plus accrued and unpaid interest up to the redemption date.
The Company may from time to time seek to retire or purchase for cash its outstanding debt securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.
In March 2015, the Company repurchased $ 5.4 million (face value) of the Notes.
Re-investment requirement under the bond indenture :
Cash proceeds from asset sales must be re-invested in the Company’s business within one year of the closing date of the transaction. This window of investment can be extended an additional six months contingent upon firm capital commitments. A balance of less than $ 50M can be kept. By definition, the amount of re-investment can include planned capital spending or capital applied to mergers and acquisitions. Should the re-investment requirements not be met within the timeframe specified above, IAMGOLD is required to buy back bonds at par in an amount equal to the remaining balance of the proceeds not yet re-invested in the business.