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Peter Hambro Mining (POG)

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Thursday 25 September, 2008

Peter Hambro Mining

Re Convertible Bonds

RNS Number : 3183E
Peter Hambro Mining PLC
25 September 2008
 



25 September 2008

 

ADJUSTMENT TO CONVERSION PRICE OF THE US$140 MILLION 7.125 PER CENT GUARANTEED CONVERTIBLE BONDS DUE 2010 (ISIN: XS0224133099)

 

Unless otherwise defined, capitalised terms used in this announcement shall have the same meaning as defined in the terms and conditions (Terms and Conditions) of the US$140 million 7.125 per cent Guaranteed Convertible Bonds (Bonds) due 2010, which were issued by the Peter Hambro Mining plc's subsidiary, Peter Hambro Mining Group Finance Limited, on 11 August 2005.

On 22 September 2008, Peter Hambro Mining plc (PHM) announced its interim results and on 23 September 2008, PHM announced that an interim dividend of 7.5 pence sterling is to be paid on 31 October 2008.

The Terms and Conditions provide for adjustments to be made to the conversion price of the Bonds (Conversion Priceif a capital distribution is paid or made to holders of PHM's Ordinary Shares.

A summary of the adjustment to the Conversion Price based on the formula in Condition 6 (b) of the Terms and Conditions is as follows:

 

Adjusted Conversion Price

= Conversion Price x (A-B)/A

Where:


Conversion Price

= £7.513 per Bond(1)

A

= £6.536 being the Current Market Price(2) of one Ordinary Share on the dealing day immediately preceding the date on which the Company's interim dividend was publicly announced

B

= £0.075 being the portion of the Fair Market Value(3) of the Interim Dividend attributable to one Ordinary Share

Interim Dividend

= £0.075 (to be paid on 31 October 2008)

 

(1) The original Conversion Price of £7.56 is, for the purposes of calculating the present adjustment, deemed to have been adjusted to £7.513 following the payment by the Company of its maiden final dividend of £0.075 on 1 August 2008. No adjustment of the Conversion Price was required following the maiden dividend as the change would have amounted to less than 1 per cent of the then Conversion Price.
(2) Current Market Price means, in respect of an Ordinary Share at a particular date, the average volume weighted average price of an Ordinary Share for the five consecutive dealing days ending on the dealing day immediately preceding such date.
(3) Fair Market Value means, with respect to a cash dividend paid or to be paid, the amount of such dividend.

The Adjusted Conversion Price, rounded down to the nearest £0.01, is therefore £7.42. The adjustment to the Conversion Price will take effect on 31 October 2008, being the payment date for the interim dividend.

Enquiries:


Alya Samokhvalova/Rachel Tuft

Peter Hambro Mining plc


+44 (0) 20 7201 8900



David SimonsonTom Randell

Merlin PR


+44 (0) 20 7653 6620

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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