$225m (+33.75m) sen sub cb coming tonight from JPM/BMO. Terms: 5y, 3-3½% up 35-40%.
NC-3, SC @130% thereafter w/makewhole. UOP =GCP (development on new mines).
PF cash:320mm
LTM EBITDA:140mm
PF debt:295mm
Gross Lev: 2.1x, we’ll use L+650.
2yr 90d real vol= 88, but ADV=6mm (BTO CN), 830k (BTG US) and options non-existant. W/ brw also not gc (~100bps blended rate), we’ll cap vol@35%.
Theo=98¾/100½/102¼.
Of existing gold names, RGLD and NEM B best comps.
RGLD xpar 2⅞ up 65%, NEM B 1⅝ up 114%, so profile clearly more attractive on BTG. We know both NEM and RGLD have o/r support on way down, but w/Stk up nearly 100% from June lows, and non-gc brw, the question is how well this holds on way down, particularly w/ subordinate ranking.
Nicaragua- La Liberted, El Limon
Philippines – Masbate (51% revenues)
Nambia – Otijikoto 92% (late 2014) – need $230m in next 2 years
Colombia – Gramalate 49% JV with Anglogold 51%
Cash cost 580/oz + Masbate is 722/oz
Cash 96m
Debt 121m
La Liberted 120m CFFO, 178m Rev, 45m capex
El Limon 40m CFFO, 87m Rev, 23m capex
Masbate 294m rev
Secured revolver L+350
Underwriter assumptions 650/40
No FCF until 2017