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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: LaFayette555 who wrote (1347)	9/28/1999 10:34:00 PM
From: m.philli	Respond to of 3558

Does anyone have a comment on whether these debentures might be converted to Barrick shares in light of the recent Barrick share price increase? I believe the conversion price is $19 U.S. (TIDY PROFIT, WONDER WHO HOLDS THE DEBT? Barrick? .............release from last spring Trizec Hahn Corporation Exchangeable Debentures In Bought Deal Financing Cash Proceeds To Be Used To Complete Redemption of All Outstanding 3 1/4% Exchangeable Debentures TRIZECHAHN CORP ("TZH-TMDNPQX") - To Issue Exchangeable Debentures In Bought Deal Financing - Cash Proceeds To Be Used To Complete Redemption of All Outstanding - 3 1/4% Exchangeable Debentures TrizecHahn Corporation announced that it has signed a bought deal underwriting agreement with RBC Dominion Securities Inc. providing for the sale of $204.4 million principal amount of a new series of debentures exchangeable for common shares of Barrick Gold Corporation. The private placement offering is expected to close March 17, 1999. The new debentures mature March 17, 2024 and otherwise contain the same terms and conditions as the exchangeable debenture financing that was announced yesterday. The proceeds from the offering will be used to redeem for cash the remaining $300 million (50%) of TrizecHahn's outstanding $600 million aggregate principal amount of 3 1/4% debentures, maturing December 10, 2018, exchangeable for Barrick common shares. A notice of redemption will be issued later this day and the redemption date will be April 26, 1999. The two new series of exchangeable debentures will have an aggregate principal amount of approximately $409 million, $191 million (32%) less than that of the 3 1/4% debentures, and a current interest rate of about 2.30%. The combined effect of the refinancings is to reduce TrizecHahn's net interest expense by approximately $11 million per annum. Both new series of debentures will bear interest at an annual rate based on the dividend on the underlying common shares of Barrick Gold plus 1.35% and will be exchangeable, at the option of the holder, into common shares of Barrick Gold at a fixed exchange rate of 52.4162 per $1,000 of principal amount or, at the option of TrizecHahn, the cash equivalent. TrizecHahn will pledge the common shares of Barrick Gold that previously secured the 3 1/4% debentures to secure its obligations upon any exercise of the holders' exchange right. The debentures will be redeemable at any time by TrizecHahn. Upon redemption, TrizecHahn may, at its option, repay the principal amount by delivering common shares of Barrick Gold based on the fixed exchange rate or the cash equivalent. The new series of debentures have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. TrizecHahn is a major integrated real estate operating company with ownership interests in 119 properties comprising 65 million square feet. It owns, develops and manages office buildings in the United States, Canada and Europe. The Company also creates retail/entertainment and office projects in North America and Europe. TrizecHahn 3 1/4% debentures, shares and warrants trade on the Toronto and Montreal stock exchanges, and its shares and warrants also trade on the New York stock exchange, under the symbol TZH. For more information about TrizecHahn, visit the TrizecHahn website at www.trizechahn.com. All amounts in U.S. dollars