(Adds convertible bond placing, share price)
LONDON, May 1 (Reuters) - Britain’s Sirius Minerals plc shares fell almost 8 percent on Wednesday after the company announced it had raised $425 million to finance the next stage of its polyhalite mine in North Yorkshire.
Sirius’s share price was down 7.7 percent at 16.08 pence by 0709 GMT after the company said it will issue 1.97 million new shares at 15 pence per new ordinary share, a discount of around 32 percent to Tuesday’s closing price.
The placing is part of a $3.8 billion financing plan, which includes the discounted share offering for the project.
The placed shares represent around 28 percent of the company’s issued ordinary stock.
It also issued a total of $644.2 million of convertible bonds due between 2023 and 2027, which will carry a yearly cash coupon of 5 percent and will be redeemed at maturity with a 10 percent yield.
The bonds will be convertible into fully paid ordinary shares of the company at an initial price of $0.24 per share, a 25 percent premium to the 15 pence (0.19 cents) equity placement price.
Polyhalite can be used as a fertiliser and has other potential industrial applications. Sirius has lined up several deals for fertiliser supply to Europe, South America, China and Africa.
The financing will also consist of a revolving credit facility of up to $2.5 billion and a $500 million senior secured bond issue.
$1 = 0.7660 pounds Reporting by Clara Denina, editing by Sinead Cruise xx