SOURCE: Stillwater Mining Company
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March 07, 2008 09:15 ET
Stillwater Mining Company Announces Pricing of $165 Million Aggregate Principal Amount of Its 1.875% Convertible Senior Notes
BILLINGS, MT--(Marketwire - March 7, 2008) - STILLWATER MINING COMPANY (NYSE: SWC)
announced today that it has priced an offering of $165 million aggregate
principal amount of its 1.875% Convertible Senior Notes due 2028.
Stillwater Mining has granted the initial purchaser an option to purchase
up to an additional $16.5 million aggregate principal amount of such notes.
Stillwater Mining intends to use the proceeds from the offering to repay
indebtedness under its outstanding credit facility and for general
corporate purposes.
If certain conditions are met, the notes will be convertible into shares of
Stillwater Mining common stock. The notes will pay interest semiannually
at a rate of 1.875% per annum. The notes will be convertible at an initial
conversion price of $23.51 per share, which is equal to a conversion rate
of approximately 42.5 shares of common stock per $1,000 principal amount of
notes.
In connection with the offering, MMC Norilsk Nickel has agreed that it and
its subsidiaries will purchase $80 million principal amount of the $165
million aggregate principal amount.
The notes being offered in the private placement are being offered only to
qualified institutional buyers, as defined in Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act"). The notes have
not been registered under the Securities Act or any other state securities
laws, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements
of the Securities Act and applicable state securities law.
This press release does not and will not constitute an offer to sell or the
solicitation of an offer to buy the notes.
Stillwater Mining Company is the only U.S. producer of palladium and
platinum and is the largest primary producer of platinum group metals
outside of South Africa and the Russian Federation. The Company's shares
are traded on the New York Stock Exchange under the symbol SWC. Information
on Stillwater Mining can be found at its Website: www.stillwatermining.com.
Some statements contained in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and, therefore, involve uncertainties or risks that could cause
actual results to differ materially. These statements may contain words
such as "believes," "anticipates," "plans," "expects," "intends,"
"estimates" or similar expressions. These statements are not guarantees of
the Company's future performance and are subject to risks, uncertainties
and other important factors that could cause our actual performance or
achievements to differ materially from those expressed or implied by these
forward-looking statements. Such statements include, but are not limited
to, comments regarding Stillwater Mining's plans for the offering, the use
of the offering proceeds, [expansion plans, costs, grade, production and
recovery rates, permitting, financing needs, the terms of future credit
facilities and capital expenditures, increases in processing capacity, cost
reduction measures, safety, timing for engineering studies, and
environmental permitting and compliance, litigation, labor matters and the
palladium and platinum market.] Additional information regarding factors,
which could cause results to differ materially from management's
expectations, is found in the section entitled "Risk Factors" in the
Company's 2007 Annual Report on Form 10-K. The Company intends that the
forward-looking statements contained herein be subject to the
above-mentioned statutory safe harbors. Investors are cautioned not to rely
on forward-looking statements. The Company disclaims any obligation to
update forward-looking statements.