Primero Mining completes US$75M bought-deal offering of convertible debentures

On February 9, 2015, Primero Mining Corp. (the “Company”) announced the closing of its bought-deal offering (the “Offering”) of US$75 million aggregate principal amount of 5.75 per cent convertible subordinated debentures (the “Debentures”) maturing on February 28, 2020. 

The Offering was effected by way of a short form prospectus filed in each of the Provinces of Canada except Québec. The Debentures are listed on the Toronto Stock Exchange and trade under the symbol “P.DB.V”. 

The Company’s common shares issuable upon the conversion, redemption or maturity of the Debentures are listed on the Toronto Stock Exchange (“P”) and on the New York Stock Exchange (“PPP”). 

The Debentures were sold to a syndicate of underwriters led by RBC Dominion Securities Inc., and including BMO Nesbitt Burns Inc., Scotia Capital Inc., Canaccord Genuity Corp., CIBC World Markets Inc., and TD Securities Inc. 

The Company intends to use the net proceeds of the Offering to fund underground development and mill expansion plans at its San Dimas mine, to fund development and capital expenditures at the Black Fox complex and to repay the indebtedness outstanding under its US$75 million revolving credit facility, with the balance to be used for general corporate purposes. 

The Company was advised by a team of Fasken Martineau DuMoulin LLP lawyers that included John Turner, John Sabetti, Alex Nikolic, Jessica Catton, Aidan Hyde (corporate finance) and Mitchell Thaw (tax) with the assistance of Lata Casciano (Vancouver office). The company was also advised by US counsel at Milbank, Tweed, Hadley & McCloy LLP with a team comprising Mark Mandel, Brett Nadritch, Benjamin Miles and Russell Kestenbaum (tax). 

The underwriters were advised by a Blake, Cassels & Graydon LLP team comprising Tim Andison, Norbert Knutel, Gerald Gaunt and David Colman.