Caledonia Mining Shares Drop After $125 Million Notes Offering Prices

By Chris Wack

Caledonia Mining shares were 19% lower, at $26.26, after the company priced $125 million of 5.875% convertible senior notes due 2033 in a private placement.

The company said the size of the offering was increased from the previously announced $100 million of notes.

In addition, Caledonia granted the initial purchasers of the notes an option to buy, during a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $25 million of notes.

The offering is expected to close Jan. 20.

The Notes will be general senior unsecured obligations of Caledonia and will accrue interest payable semiannually, beginning July 15, at a rate of 5.875% a year.

The notes will mature Jan. 15, 2033, unless earlier converted, redeemed or repurchased.

Caledonia estimates proceeds from the offering will be $120.2 million, or $144.4 million if the initial purchasers exercise their option to purchase additional notes in full.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

01-15-26 1045ET