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Unformatted text preview: fer Statement with the Securities
and Exchange Commission stating the Company’s intention to repurchase the convertible senior notes tendered
prior to March 15, 2013, in cash. iii. Senior notes
On August 22, 2011, the Company completed a $1.0 billion offering of debt securities consisting of $250.0
million principal amount of 3.625% senior notes due 2016, $500.0 million principal amount of 5.125% senior
notes due 2021 and $250.0 million principal amount of 6.875% senior notes due 2041 (collectively, the “notes”).
The notes pay interest semi-annually. Kinross received net proceeds of $980.9 million from the offering, after
discount, payment of the commissions to the initial purchasers and expenses directly related to the offering.
Except as noted below, the notes are redeemable by the Company, in whole or part, for cash at any time prior to
maturity, at a redemption price equal to the greater of 100% of the principal amount or the sum of the present
value of the remaining scheduled principal and interest payments on the notes discounted at the applicable
treasury rate, as defined in the indenture, plus a premium of between 40 and 50 basis points, plus accrued KINROSS GOLD 2012 ANNUAL REPORT FS47 interest, if any. Within three months and six months of maturity of the notes due in 2021 and 2041,
respectively, the Company can only redeem the notes in whole at 100% of the principal amount plus accrued
interest, if any. In addition, the Company is required to make an offer to repurchase the notes prior to maturity
upon certain fundamental changes at a repurchase price equal to 101% of the principal amount of the notes plus
accrued and unpaid interest to the repurchase date, if any.
iv. Kupol loan
On December 21, 2011, the Company completed a $200.0 million non-recourse loan from a group of
international financial institutions. The non-recourse loan carries a term of five years, maturing on September
30, 2016 and bears annual interest of LIBOR plus 2.5%. Semi-annual principal repayments of $30.0 million will
commence in March 2013 and continue through September 30, 2015. Principal repayments due on March 31,
2016 and September 30,...
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This document was uploaded on 03/30/2014.
- Spring '14