VANCOUVER, Jan. 10, 2013 /CNW/ - Silver Standard Resources Inc. (NASDAQ:
SSRI, TSX: SSO) ("Silver Standard" or the "Company") announced today
that it has priced its previously announced offering of convertible
senior notes due 2033 (the "Notes"). The Company increased the
offering to US$250 million from US$200 million aggregate principal
amount (or approximately US$287.5 million aggregate principal amount if
the over-allotment option is exercised in full). The Notes will be
issued at par value.
The Company intends to use up to approximately US$138 million of the net
proceeds from the sale of the Notes to repurchase or redeem its
existing convertible notes in March 2013 and the remaining net proceeds
for general corporate purposes, which may include developing or
advancing its property portfolio.
The Notes will bear cash interest semi-annually at a rate of 2.875% per
annum. The initial conversion rate for the Notes will be 50 common
shares per US$1,000 principal amount of Notes, equivalent to an initial
conversion price of approximately US$20.00 per common share. The
initial conversion rate represents a premium of 42.86% relative to
today's closing sale price of Silver Standard's common shares and is
subject to adjustment in certain events.
Silver Standard will have the right to redeem the Notes in certain
circumstances and holders will have the right to require Silver
Standard to repurchase their Notes at certain times.
The offering is expected to close on or about January 16, 2013, subject
to customary closing conditions.
The Notes, and the common shares into which the Notes are convertible
(the "Shares"), have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or qualified
by a prospectus in Canada. The Notes and the Shares may not be offered
or sold in the United States absent registration under the Securities
Act or an applicable exemption from registration under the Securities
Act. The Notes will be offered only to "qualified institutional
buyers" (as defined in Rule 144A under the Securities Act) and outside
the United States to non-U.S. persons in compliance with Regulation S
under the Securities Act. Offers and sales in Canada will be made only
pursuant to exemptions from the prospectus requirements of applicable
Canadian provincial securities laws.
This news release is neither an offer to sell nor the solicitation of an
offer to buy the Notes or any other securities and shall not constitute
an offer to sell or solicitation of an offer to buy, or a sale of, the
Notes or any other securities in any jurisdiction in which such offer,
solicitation or sale is unlawful.
Cautionary Notice Regarding Forward-Looking Statements:
Statements in this news release are forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and forward-looking information within the meaning of Canadian
securities laws (collectively, "forward-looking statements"). All
statements, other than statements of historical fact, are
forward-looking statements. Generally, forward-looking statements can
be identified by the use of words or phrases such as "expects",
"anticipates", "plans", projects", "estimates", "assumes", "intends",
"strategy", "goals", "objectives", "potential" or variations thereof,
or stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among other
things: the exercise of the over-allotment option, the proposed closing
of the offering and the anticipated use of proceeds. These
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied, including,
without limitation, risks relating to: the need to satisfy the
conditions set forth in the purchase agreement for the Notes and the
need to satisfy regulatory and legal requirements with respect to the
offering. See the Company's most recent Form 20-F filed with the U.S.
Securities and Exchange Commission and Canadian regulatory authorities
for a discussion of other risks and uncertainties that may affect the
Company's forward-looking statements.
The Company's forward-looking statements are based on what the Company's
management considers to be reasonable assumptions, beliefs,
expectations and opinions based on the information currently available
to it. We cannot assure you that actual events, performance or results
will be consistent with these forward looking statements, and
management's assumptions may prove to be incorrect. The Company's
forward-looking statements reflect current expectations regarding
future events and speak only as of the date hereof and the Company does
not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions should
change other than as required by applicable law. For the reasons set
forth above, you should not place undue reliance on forward-looking
SOURCE: Silver Standard Resources Inc.
For further information:
Silver Standard Resources Inc.
N.A. Toll Free: (888) 338-0046
All others: (604) 484-8216