IAMGOLD Corporation (IAMGOLD) has launched a USD500m bond due 2025, intending to use the proceeds to redeem its existing 2020 bond
IAMGOLD announced on 3 March 2017 that it launched a USD500m bond due 2025. Further, IAMGOLD intends to use the proceeds from the new launch to fund the redemption of its 6.75% October 2020 bond.
Pursuant to the terms of the indenture, IAMGOLD will issue a conditional notice of redemption for its existing 2020 bond. The redemption will be conditional upon the successful completion of the new 2025 offering.
Given previous buybacks, there is only USD485m of the original USD650m outstanding. The existing October 2020 bond is now callable at 103.375% with 30 to 60 days’ notice, as outlined in the information memorandum (IM) excerpt*.
The IAMGOLD October 2020 bond factsheet is available here.
*IM (p52):
On and after October 1, 2016, the Company may redeem the Notes, in whole or in part, on one or more occasions, upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as a percentage of principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest on the Notes, if any, to (but excluding) the applicable date of redemption (subject to the right of Holders of record on the relevant Record Date to receive interest due on an Interest Payment Date falling on or prior to such redemption date), if redeemed during the 12 month period beginning on 1 October of each of the years indicated below:
| Year | 2016 | 2017 | 2018 and thereafter |
| Percentage | 103.375% | 101.688% | 100.000% |