Each one in plain English, with the numbers worked through for a shareholder.
14 Jan 2014capital raising announcement▲ GoodMajor
The rights offering closed with about US$2.4 billion in gross proceeds and 1,006,116,602 new shares issued, 100% of the maximum. The money is being used to repay in full the US$1.8 billion Interim Funding Facility and US$600 million bridge facility owed to Rio Tinto, with any remainder going to Oyu Tolgoi funding and corporate costs. The offering was over-subscribed, so Rio Tinto did not have to buy under its standby commitment and its stake stayed at 50.8%. This resolves the rights offering and Rio Tinto debt repayment threads; shareholders who did not exercise were diluted.
Turquoise Hill said its rights begin regular-way trading on the NYSE and NASDAQ on December 12, 2013, and that the offering prospectus was mailed to shareholders on December 11. The offer stays open 27 days from mailing and expires at 5:00 p.m. EST on January 7, 2014; the company urges shareholders to act early because of the holidays, and those who do not exercise will see their ownership percentage fall. Terms are unchanged from the November announcement.
Turquoise Hill said its rights in the rights offering would begin trading on a when-issued basis on the NYSE and NASDAQ on December 3, 2013 and on the TSX on December 4, 2013, so shareholders can sell their rights instead of exercising them. The filing also includes an investor presentation restating the offering terms already announced (record date December 6, 2013, US$2.40 or CDN$2.53 per share, expiry January 7, 2014) and 2014 production expectations of 150,000-175,000 tonnes of copper and 700,000-750,000 ounces of gold in concentrate; this continues the rights offering announced in November.
26 Nov 2013capital raising announcement● NeutralMajor
Turquoise Hill filed the final prospectus for its rights offering, aiming for about US$2.4 billion gross: each share held on December 6, 2013 gets one right to buy one share at US$2.40 or CDN$2.53, about a 42% discount to November 25 closing prices. About 1,006 million new shares (100% of those currently outstanding) are expected, the offer expires January 7, 2014, and Rio Tinto backstops unsold shares for a 3% fee. Proceeds repay the Rio Tinto facilities; shareholders who do not exercise will be diluted.
Turquoise Hill said it cannot complete Oyu Tolgoi project financing in 2013 because of uncertainty in talks with the Mongolian Government, and so filed a preliminary prospectus for a rights offering to repay Rio Tinto's US$1.8 billion Interim Funding Facility and US$600 million New Bridge Facility. Rio Tinto agreed to extend both maturities to no later than January 15, 2014, and to backstop any unsold shares (3% standby fee). Shareholders who do not take up their rights will see their ownership percentage fall. It also reported a Q3 2013 net loss of US$94.0 million, cash of US$102.5 million at September 30, restated 2012 statements already filed, and the completed sale of its 56.1% Inova Resources stake on November 1.
