Wednesday, June 23, 2010

Royal Gold (NASDAQ:RGLD) Prices Offering at $48.50 a Share

In hopes of raising approximately $240.3 million, after expenses, Royal Gold (NASDAQ:RGLD) prices its public offering at $48.50 a share. The company is offering 5.2 million common shares at that price.

The price is a discount of 5 percent off the Tuesday close of the company, which was $51.28. The share price was trading in New York at $48.74, a decline of $2.54, or 4.95%, as of 1:09 PM EDT.

This was an expected result because of the dilution factor of the added shares out there.

An additional 780,000 shares are offered as an option to the underwriters in order to cover over-allotments (demand). The options are available for 30 days.

The capital is being raised to fund acquisitions, pay down debt, and for any other general corporate purposes.

The offering is scheduled to close on Monday, June 28,2010.

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