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Hochschild to raise $250m to fund an acquisition spree

HOCHSCHILD, the FTSE 250 Latin American focused precious metals miner, is set to raise $250m (&pound;157m) through an equity raising, it said yesterday, and will use the cash to make acquisitions.<br /><br />It will place 30.38m shares to raise $150m, while the remaining $100m will come from offering senior unsecured convertible bonds set to mature in 2014.<br /><br />The shares issued make up 9.9 per cent of the current share capital of Hochschild. It has not detailed the price at which they will be issued.<br /><br />The convertible bonds are set to carry a coupon which will be between 5.75 per cent and 6.5 per cent.<br /><br />The bond will convert at a premium of between 30 per cent and 35 per cent of the issued stock&rsquo;s share price.<br /><br />&ldquo;We are well-positioned to benefit from further investment in our asset base as well as further selective M&amp;A opportunities,&rdquo; chief executive Miguel Aramburu said.<br /><br />Hochschild added it was on course to hit its full year production target of 28m attributable silver equivalent ounces, after third quarter production of 7.5m attributable silver equivalent ounces.<br /><br />The miner said it also planned to use some of the proceeds to pay off $85m of its $200m syndicated loan facility. Some of the cash will also be used to bump up the firm&rsquo;s stake in Lake Shore Gold.