On March 10, 2003, Toronto-based mining company, Aur Resources Inc., completed the sale, by private placement, of US$125 million of senior unsecured notes with an interest rate fixed at 6.75 per cent. The net proceeds from the notes were principally used to repay Aur’s outstanding bank debt. Principal repayment of the notes will be made in four equal annual installments beginning March 11, 2007, whereas the former bank loan required minimum principal repayments of $104.9 million in 2003 to 2006, as well as the maintenance of a $20 million minimum cash balance. The sale of the notes significantly increased the cash available to Aur to advance its business activities, including the ability, after repaying in cash the US$35 million convertible debenture owing to Teck Cominco Limited by December 31, to internally finance the development of Aur’s Duck Pond copper-zinc deposit in Newfoundland, as well as to pursue other business opportunities. Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as sole placement agent on Aur’s behalf in connection with the private placement of the notes.
Aur was represented by in-house counsel Peter McCarter, assisted by Kevin Rooney (securities), Barb Worndl (tax) and Andy Ayotte and Doug Palmateer (banking) of Aird & Berlis LLP. Neil Mann and Amy Ritter of Chapman and Cutler in Chicago represented Aur in the U.S. Jim Greenfield and Kevin Braun of Bingham McCutchen LLP in Hartford, Connecticut represented the noteholders in the U.S.
Aur was represented by in-house counsel Peter McCarter, assisted by Kevin Rooney (securities), Barb Worndl (tax) and Andy Ayotte and Doug Palmateer (banking) of Aird & Berlis LLP. Neil Mann and Amy Ritter of Chapman and Cutler in Chicago represented Aur in the U.S. Jim Greenfield and Kevin Braun of Bingham McCutchen LLP in Hartford, Connecticut represented the noteholders in the U.S.
