Transaction
Royal Gold Announces the Closing of Its Public Offering of Common Stock
By Joan Beck, Howard Burshtein, Heather Zordel
On April 14, 2009, Royal Gold, Inc. announced the closing of its public offering of common stock pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission and a shelf prospectus filed with certain Canadian securities regulatory authorities. The Company sold 6,500,000 shares of common stock at a price of $38.00 per share and has granted the underwriters a 30-day option to purchase up to 975,000 additional shares of common stock to cover over-allotments, if any. Proceeds to the Company from the offering, net of commission and expenses, are expected to be approximately $235.3 million, assuming the underwriters' over-allotment option is not exercised.
The proceeds from the offering will be used primarily to pay the cash component of the Andacollo transaction that was announced on April 6, 2009. If the transaction does not close, the net proceeds will be used for general corporate purposes and to fund future acquisitions.
HSBC Securities (USA) Inc. acted as the global coordinator and as the joint book-runner for the offering with Goldman, Sachs & Co. and Scotia Capital (USA) Inc. Merrill Lynch & Co. and NBF Securities (USA) Corp. were co-managers for the offering.
Cassels Brock acted for Royal Gold Inc. with a team that included Howard Burshtein, Heather Zordel and Joan Beck.