Curragh completes US$130-m. issue

A US$130 million bond issue arranged by Curragh Resources (TSE) to offset debts associated with various projects, including the purchase of a 20% stake in a Spanish smelter, was completed recently. The private placement of 10-year subordinated notes due in the year 2000 was sold in the U.S. and in Europe by New York-based Morgan Stanley & Co.

A US$45-million portion of the bonds carries a fixed interest rate of 11 3/4% while the remaining US$85 million floats at London Interbank offered rate plus an undisclosed percentage. The melted rate adds up to about 12%.

The placement allows Curragh and partner Hillsborough Resources (TSE) to finance development of the Mt. Hundere lead-zinc deposit in the Yukon. It also enables Curragh to completely retire its outstanding bank debt.