IKN | Tahoe Resources (THO.to) Bought Deal: That’s 1% of its host country’s GDP!

True dat! Take Guatemala’s 2009 official exchange rate GDP of $37.66Bn, take the deal and assume the overallotment happens, do the math and it’s 0.93%….. close enough.

It’s not something we normally comment upon on these pages, but the bought deal financing just announced by Tahoe Resources (THO.to) is a big chunk of change, coming in at $306m (and Goldcorp committed to buying in and keeping their current 42% of the company intact). Here’s the cover of the termsheet.

Issue Price:         C$14.10 per common share, 3.8% to market closed
Jurisdictions:     All Provinces of Canada (excluding Quebec) and to the U.S. via Rule 144A/Reg D
Settlement:       December 24, 2010

Gross Proceeds:

C$306,027,528

Underwriters’ Option:

The Company will grant the Underwriters an option (the “Over-Allotment Option”) to purchase up to such number of additional Shares as is equal to 15% of the number of Shares sold under the Offering to cover over-allotments, if any, and for market stabilization purposes. The Over-Allotment Option shall be exercisable for a period of 30 days following the Closing Date at an exercise price per Share equal to the Issue Price. The Underwriters shall be entitled to the same Commission (as hereinafter defined) provided for below in respect of any Shares issued and sold upon exercise of the Over-Allotment Option.

Use of Proceeds:

The net proceeds of the Offering will be used to fund the advancement and development of the Escobal Project, for acquisitions and for general corporate purposes.

Type of Transaction:

Bought deal, short form prospectus offering, subject to a formal underwriting agreement, including a standard industry “disaster out” and “material adverse change out” clauses running up to the Closing Date.

Jurisdictions:

The qualifying jurisdictions for this offering will be all provinces of Canada except Québec. The Shares will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A and/or Regulation D of the United States Securities Act of 1933, as amended. The Shares will also be sold to buyers in the United Kingdom on a private placement basis.

Listing:

The Company shall use best efforts to obtain the necessary approvals to list the Shares on the Toronto Stock Exchange, which listing shall be conditionally approved prior to the Closing Date.

Underwriters:

GMP Securities L.P. ^1,2                                                                            50.0%
BMO Capital Markets                                                                             15.0%
Canaccord Genuity Inc.                                                                          15.0%
CIBC World Markets Inc.                                                                       5.0%
Merrill Lynch Canada Inc.                                                                      5.0%
RBC Capital Markets                                                                                5.0%
Dundee Securities Inc.                                                                           2.5%
TD Securities Inc.                                                                                      2.5%

(1)                                                                          Lead underwriter

(2)                                                                         Sole bookrunner and step-up fee of 5.0%

Gross Proceeds:	C$306,027,528
Underwriters’ Option:	The Company will grant the Underwriters an option (the “Over-Allotment Option”) to purchase up to such number of additional Shares as is equal to 15% of the number of Shares sold under the Offering to cover over-allotments, if any, and for market stabilization purposes. The Over-Allotment Option shall be exercisable for a period of 30 days following the Closing Date at an exercise price per Share equal to the Issue Price. The Underwriters shall be entitled to the same Commission (as hereinafter defined) provided for below in respect of any Shares issued and sold upon exercise of the Over-Allotment Option.
Use of Proceeds:	The net proceeds of the Offering will be used to fund the advancement and development of the Escobal Project, for acquisitions and for general corporate purposes.
Type of Transaction:	Bought deal, short form prospectus offering, subject to a formal underwriting agreement, including a standard industry “disaster out” and “material adverse change out” clauses running up to the Closing Date.
Jurisdictions:	The qualifying jurisdictions for this offering will be all provinces of Canada except Québec. The Shares will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A and/or Regulation D of the United States Securities Act of 1933, as amended. The Shares will also be sold to buyers in the United Kingdom on a private placement basis.
Listing:	The Company shall use best efforts to obtain the necessary approvals to list the Shares on the Toronto Stock Exchange, which listing shall be conditionally approved prior to the Closing Date.
Underwriters:	GMP Securities L.P. ^1,2 50.0% BMO Capital Markets 15.0% Canaccord Genuity Inc. 15.0% CIBC World Markets Inc. 5.0% Merrill Lynch Canada Inc. 5.0% RBC Capital Markets 5.0% Dundee Securities Inc. 2.5% TD Securities Inc. 2.5% (1) Lead underwriter (2) Sole bookrunner and step-up fee of 5.0%

Tahoe Resources (THO.to) Bought Deal: That’s 1% of its host country’s GDP!

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