Agnico-Eagle announces full redemption for common shares of 4.5% convertible debentures due 2012
21 December 2005 - 12:30AM
PR Newswire (US)
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, Dec. 20 /PRNewswire-FirstCall/ -- Agnico-Eagle Mines
Limited ("Agnico-Eagle") announced today that it has issued a
notice to redeem all of its issued and outstanding $144 million
principal amount 4.50% convertible subordinated debentures due
February 15, 2012 (the "Debentures") and will discharge all of its
obligations under the indenture governing the Debentures. The
redemption date is set for February 15, 2006. While interest on the
Debentures will cease to accrue on and after the redemption date, a
full semi-annual payment of interest will be made on February 15,
2006 for holders of record as at January 31, 2006 (the "Record
Date"). "The redemption of these debentures will leave Agnico-Eagle
essentially debt-free and will be accretive to our common
shareholders", said Sean Boyd, Vice Chairman and Chief Executive
Officer. "With over $120 million in cash and a substantially
undrawn credit line of $150 million, the Company is well positioned
to advance its pipeline of projects towards achieving its goal of
tripling gold production and doubling its gold reserves by 2009",
added Mr. Boyd. In accordance with the indenture governing the
Debentures, Agnico-Eagle has elected to satisfy its obligation to
pay the entire redemption price by the delivery of common shares of
Agnico-Eagle ("Common Shares"). Fractional interests in Common
Shares will be paid in cash. The redemption price for the
Debentures will be approximately $1,022.68 per $1,000 principal
amount of Debentures redeemed. The redemption price will be
satisfied by the delivery of approximately 63.4767 Common Shares
for each $1,000 principal amount of Debentures redeemed. The number
of Common Shares required to be delivered under the indenture is
based on 95% of the volume weighted average trading price per
Common Share on the New York Stock Exchange for the 20 consecutive
trading days ending on the fifth day preceding December 20, 2005,
the date of the notice of redemption. A notice of redemption may be
obtained from Computershare Trust Company of Canada by contacting
Patrick Griffin at (416) 263-9333. Holders of the Debentures have
the right to convert their Debentures at any time before the close
of business on February 14, 2006 at a conversion rate of 71.429
shares per $1,000 principal amount of Debentures, or $14 per share,
in accordance with the indenture. Although the Company is not
obligated to do so, accrued and unpaid interest will be paid on
February 15, 2006 on Debentures converted after the Record Date.
Forward Looking Statements The information in this press release
has been prepared as at December 20, 2005. Certain statements
contained in this press release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. When used in this
document, the words "anticipate", "expect", "estimate," "forecast,"
"planned" and similar expressions are intended to identify
forward-looking statements. Such statements reflect the Company's
views at the time with respect to future events and are subject to
certain risks, uncertainties and assumptions. Many factors could
cause the actual results to be materially different from those
expressed or implied by such forward-looking statements, including,
among others, those which are discussed under the heading "Risk
Factors" in the Company's most recently filed Annual Information
Form and Annual Report on Form 20-F. The Company does not intend,
and does not assume any obligation, to update these forward-looking
statements. About Agnico-Eagle Agnico-Eagle is a long established
Canadian gold producer with operations located in Quebec and
exploration and development activities in Canada, Finland, the
United States and Mexico. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit. The Company has full exposure to higher gold
prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 26 consecutive years. DATASOURCE:
Agnico-Eagle Mines Limited CONTACT: David Smith, Director, Investor
Relations, (416) 947-1212
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