Northern Energy and Mining to spend $52.6 million on share, debt buybacks

Funds for the buyback were generated by the sale of NEMI’s interest in the Peace River Coal Limited Partnership to Anglo American Coal Canada in a deal that closed in September.

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NEMI said at the time that it would use most of its cash in a distribution to shareholders or a buyback. Details of the buyback were announced Nov. 18 and the results were released late Wednesday.

A total of 38,203,032 shares were tendered to NEMI’s substantial issuer bid, which offered $1.06 each for a total of 38 million shares. As a result, NEMI will pay a total of $40.3 million to buy 99.5 per cent of the shares tendered.

In addition, NEMI will pay $11.2 million to repurchase 8% convertible debentures plus accrued interest. The company had offered $117.78 per $100 in principal amount, with $10.449,000 in principal amount outstanding.

Following the purchase and cancellation of the shares and debentures tendered under the offer, NEMI will have 16.6 million shares and $330,000 in principal amount of debentures outstanding.