08-15-13 B2Gold (BTG)

$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

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