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Allied Nevada Gold offers C$400M of 7-year notes

This story has been corrected from an earlier version to reflect the fact that the transaction is technically a bought deal – as opposed to being completed – as 8.75% notes due 2019. It is  currently being marketed to investors.

Allied Nevada Gold is in market with an offering of Canadian dollar denominated senior notes via bookrunners Scotia and GMP Securities, according to sources. The Reno-based company will use proceeds from the deal to fund the expansion of its Hycroft gold and silver mine in Nevada and for general corporate purposes. Investors are being offered an opportunity to participate in the transaction, which is expected to be rated B/B3. A proposed term sheet follows:

Issuer Allied Nevada Gold
Ratings B/B3
Amount C$400 million
Issue senior notes (144A)
Coupon 8.75%
Price 100
Yield 8.75%
Spread n/a
FRN eq. n/a
Maturity June 1, 2019
Call nc4
Trade May 16, 2012
Settle May 25, 2012
Joint Bookrunners Scotia/GMP
Co-Leads
Co’s.
Px talk
Notes w/ three-year equity clawback for 35% @ 108.75; w/ change of control put @ 101.

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