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COEUR D'ALENE, Idaho, Dec 10,
2010 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today announced that it is calling for redemption
all of its outstanding 1.25% Convertible Senior Notes due 2024. As of
December 9, 2010, there was $1,859,000 aggregate principal amount of Notes
outstanding.
Pursuant to the terms of the
Indenture dated January 13, 2004 governing the Notes, the Notes will be
redeemed on January 21, 2011 at a redemption price of 100% of the principal
amount of the Notes to be redeemed, plus accrued but unpaid interest
thereon, up to, but not including, the Redemption Date. Interest on the
Notes called for redemption ceases to accrue on and after the Redemption
Date.
The Bank of New York Mellon, as
Trustee under the Indenture, has been directed to send a notice of
redemption to the Depository Trust Company, as depositary with respect to
the Notes. Notes held in book-entry form will be redeemed in accordance
with the procedures of the Depository Trust Corporation.
The Indenture also provides the
holders of the Notes with a right to require the Company to purchase their
Notes on January 18, 2011. To the extent that holders exercise this put
right, the Company will pay a repurchase price in cash, consisting of 100%
of the principal amount of the Notes repurchased, plus accrued but unpaid
interest thereon, up to, but not including, January 15, 2011. To the extent
that holders do not exercise this put right before 5:00 p.m. on January 14,
2011, the Notes will be redeemed on January 21, 2011.
Holders may exercise their put
right by delivery to the Company and the Paying Agent of a written notice
of purchase at any time from the opening of business on December 15, 2010
until 5:00 p.m. on January 14, 2011, stating (i)
the certificate number of the Note which the Holder will deliver to be
repurchased, (ii) the portion of the principal amount of the Note which the
Holder will deliver to be repurchased, which portion must be in a principal
amount of $1,000 or an integral multiple thereof and (iii) that such Note
shall be repurchased as of the Repurchase Date pursuant to the terms and
conditions specified in paragraph 6 of the Notes and in the Indenture, or
by delivery or book-entry transfer of such Notes to the Paying Agent prior
to, on or after the Repurchase Date at the offices of the Paying Agent.
Unless the Company defaults in making payment of the Repurchase Price,
interest on Notes covered by any Repurchase Notice will cease to accrue on
and after the Repurchase Date.
The Notes may be converted at
any time before 5:00 p.m. on January 19, 2011. The current conversion price
is $76.00 per share of common stock of the Company and the December 9, 2010
closing price of the common shares of the Company, as reported on the New
York Stock Exchange, was $26.03. Each $1,000 principal amount of the Notes
is convertible into 13 shares of common stock of the Company plus cash in
lieu of 0.1579 fractional shares, subject to adjustment under certain
circumstances as set forth in the Indenture. Notes as to which a Repurchase
Notice has been given may be converted only if the applicable Repurchase
Notice has been withdrawn in accordance with the terms of the Indenture.
A Repurchase Notice may be
withdrawn by means of a written notice of withdrawal delivered to the
office of the Paying Agent in accordance with the Repurchase Notice at any
time prior to 5:00 p.m. on January 14, 2011, specifying (i) the certificate and principal amount of the Note in
respect of which such notice of withdrawal is being submitted and (ii) the
principal amount, if any, of such Note which remains subject to the
original Repurchase Notice and which has been or will be delivered for
purchase by the Company.
The Repurchase Price for any
Notes as to which a Repurchase Notice has been given and not withdrawn
shall be paid promptly following the later of the Repurchase Date and the
time of surrender of such Notes.
Notes must be surrendered to the
Paying Agent to collect payment of the Repurchase Price and accrued but
unpaid interest. The Bank of New York Mellon, as Paying Agent and
Conversion Agent, can be contacted at:
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The Bank of New York Mellon
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101 Barclay Street - 4E
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New York, NY 10286
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Attention: Global Finance Americas
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Fax: (212) 815-5802
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The CUSIP number, CUSIP No.
192108AQ1 is included solely for the convenience of the holders of the
Notes. No representation is made as to their correctness. This press
release shall not constitute an offer to sell, or the solicitation of an
offer to buy, any security and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offer, solicitation or sale would
be unlawful.
About Coeur
Coeur d'Alene Mines Corporation
is one of the world's leading silver companies and also a growing gold
producer. Coeur is also a recognized leader in environmental stewardship
and worker safety, with 13 national and international awards earned over
the past year. The Company's three new long-life mines include the San Bartolomé silver mine in Bolivia which began
operations in 2008, the Palmarejo silver/gold
mine in Mexico, which began operations in 2009, and the Kensington gold
mine in Alaska, which began production in June of this year. The Company
also owns underground mines in Argentina and one surface mine in Nevada,
and owns a non-operating interest in a low-cost mine in Australia. The
Company conducts exploration activities in Alaska, Argentina and Mexico.
Coeur common shares are traded on the New York Stock Exchange under the
symbol CDE and the Toronto Stock Exchange under the symbol CDM.
Cautionary Statement
This press release contains
forward-looking statements within the meaning of securities legislation in
the United States, Canada, and Australia. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside the
control of Coeur, as well as other uncertainties and risk factors set out
in filings made from time to time with the SEC, the Canadian securities
regulators, and the Australian Securities Exchange, including, without
limitation, Coeur's reports on Form 10-K and Form
10-Q. Readers are cautioned not to put undue reliance on forward-looking
statements. Coeur disclaims any intent or obligation to update publicly
such forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no obligation to
comment on analyses, expectations or statements made by third parties in
respect of Coeur, its financial or operating results or its securities.
SOURCE: Coeur d'Alene Mines
Corporation
Coeur d'Alene Mines Corporation
Investors
Director of Investor Relations
Deborah Schubert, 208-665-0332
or
Media
Director of Corporate Communications
Tony Ebersole, 208-665-0777
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