Royal Gold Announces Closing of 2.875% Convertible Senior Notes Offering
Royal Gold, Inc. (NASDAQ:RGLD)(TSX:RGL) today announced
the closing of its offering of $370 million aggregate principal amount
of 2.875% convertible senior notes due 2019 (the 'Notes?), which amount
includes the full exercise by the underwriters of an over-allotment
option to purchase $45 million aggregate principal amount of the Notes.
Net proceeds from the offering were approximately $359.1 million, after
deducting underwriting discounts and commissions and offering expenses.
Royal Gold intends to use the net proceeds to repay amounts outstanding
under, and to terminate, its term loan facility, and for general
corporate purposes, including future acquisitions of royalty interests.
Goldman, Sachs & Co. acted as the sole book-running manager for the
offering, and HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc.
acted as lead managers for the offering.
The Notes were offered pursuant to an effective shelf registration
statement that was previously filed with the Securities and Exchange
Commission and a shelf prospectus filed with Canadian securities
regulatory authorities in all provinces other than Quebec under the
Multijurisdictional Disclosure System. An electronic copy of the final
prospectus supplement and related base prospectus may be obtained by
contacting: Goldman, Sachs & Co., Prospectus Department, 200 West
Street, New York, NY 10282 (telephone no. 212-902-1171, facsimile:
212-902-9316, email: prospectus-ny@ny.email.gs.com).
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the Notes, nor shall there be any sale of the Notes
in any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the laws
of such state or jurisdiction. The Notes have not been approved or
disapproved by any regulatory authority, nor has any such authority
passed upon the accuracy or adequacy of the prospectus supplement, the
prospectus or Royal Gold′s shelf registration statement.
CORPORATE PROFILE
Royal Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalties and similar
interests. As of March 31, 2012, the Company′s portfolio consisted of
191 properties on six continents, including interests in 38 producing
mines and 26 development stage projects. Royal Gold is publicly traded
on the NASDAQ Global Select Market under the symbol 'RGLD,? and on the
Toronto Stock Exchange under the symbol 'RGL.?
Cautionary 'Safe Harbor? Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical matters,
the matters discussed in this press release include forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates contained
herein. Such forward-looking statements include statements regarding the
use of proceeds from the Notes. Factors that could cause actual results
to differ materially from such forward-looking statements include, among
others, precious metals prices, economic and market conditions and the
availability of attractive acquisition opportunities, as well as other
factors described in our Annual Report on Form 10-K, and other filings
with the SEC. Most of these factors are beyond the Company′s ability to
predict or control. The Company disclaims any obligation to update any
forward-looking statement made herein. Readers are cautioned not to put
undue reliance on forward-looking statements.
Royal Gold
Karen Gross, 303-575-6504
Vice President and
Corporate Secretary