VANCOUVER - B2Gold Corp (TSX:BTO). (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G), a low-cost international gold producer with a market capitalization of $730 million and an attractive 7% dividend yield according to InvestingPro, announced its intention to offer $350 million in convertible senior unsecured notes due 2030. The company may also give initial purchasers a 15-day option to buy up to an additional $52.5 million in notes.
The net proceeds from this offering are earmarked for general corporate purposes and working capital requirements. Initially, B2Gold (NYSE:BTG) plans to use the funds to reduce the outstanding balance under its revolving credit facility and then draw on this facility in the future for similar needs. This move comes as InvestingPro data shows the company's current ratio at 0.07, indicating potential liquidity challenges.
The interest and initial conversion rates for these notes will be set based on prevailing market conditions at the time of the offering. Noteholders will have the option to convert their notes into common shares of B2Gold, with the company retaining the right to redeem the notes under certain circumstances.
In conjunction with the notes offering, B2Gold intends to enter a cash-settled total return swap for approximately $50 million of its shares with one of the initial purchasers. This swap aims to provide B2Gold with economic exposure to its shares for about a month.
The notes offering and the shares issuable upon conversion will not be registered under the U.S. Securities Act of 1933 and will be available only to qualified institutional buyers in the United States and through exemptions in Canada.
This announcement is informational and should not be considered an offer to sell or a solicitation of an offer to buy the notes or any other securities.
B2Gold, headquartered in Vancouver, Canada, operates gold mines in Mali, Namibia, and the Philippines, with additional projects under construction and exploration in various countries. The company has demonstrated strong performance with a 30.78% return over the past year and trades at a P/E ratio of 5.56. For comprehensive analysis and additional insights, including more than 30 key financial metrics and expert analysis, check out the detailed company report available on InvestingPro.
This news article is based on a press release statement from B2Gold Corp .
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