Silver
Standard Prices US$120 Million Convertible Notes Offering
VANCOUVER, BRITISH
COLUMBIA, Feb 22, 2008 (Marketwire via COMTEX News Network) -- Silver
Standard Resources Inc. ("Silver Standard") (TSX:SSO)(NASDAQ:SSRI)
announced today the pricing of its previously announced offering of US$120
million (US$138 million if the overallotment option granted to the initial
purchasers is exercised in full) aggregate principal amount of senior
unsecured convertible notes due March 1, 2028 (the "Convertible
Notes") made pursuant to private placement exemptions. The Convertible Notes
are being offered and sold at a price of 100% of their face value and will
bear interest at a rate of 4.5% per year. Silver Standard expects to receive
net proceeds of approximately US$115.6 million (or approximately US$133.1
million if the overallotment option is exercised in full) from the offering
of Convertible Notes, after payment of the commissions to the initial
purchasers and expenses of the offering.
Silver Standard
intends to use part of the net proceeds of the offering to finance a portion of
the development costs of its Pirquitas Project and to use the balance of the
net proceeds for the exploration of its other properties, for working capital
and for general corporate purposes.
The Convertible Notes
will be convertible into Silver Standard common shares at a fixed conversion
rate, subject to certain anti-dilution adjustments, upon specified events. On
conversion, holders of the Convertible Notes will receive cash and, if
applicable, common shares (or, at Silver Standard's election, in lieu of such
common shares, cash or any combination of cash and common shares). In
addition, if certain fundamental changes to Silver Standard occur, holders of
the Convertible Notes may be entitled to an increased conversion rate. The
Convertible Notes will be convertible into Silver Standard common shares at
an initial conversion rate of 23.0792 common shares per US$1,000 principal
amount of Convertible Notes converted, representing an initial conversion
price of approximately US$43.33 per common share, which is approximately 130%
of the closing price of Silver Standard's common shares on the Nasdaq Global
Market on February 21, 2008. The offering of Convertible Notes is expected to
close on February 27, 2008, subject to receipt of any required regulatory
approvals and the satisfaction of customary closing conditions.
Holders of the
Convertible Notes will have the right to require Silver Standard to
repurchase all or part of their Convertible Notes on March 1 of each of 2013,
2018 and 2023, and upon certain fundamental corporate changes. The repurchase
price will be equal to 100% of the principal amount of the Convertible Notes
being converted, plus accrued and unpaid interest to, but excluding, the
repurchase date. Silver Standard shall pay the purchase price in cash. On and
after March 5, 2013, Silver Standard may redeem all or part of the
Convertible Notes for cash at a redemption price equal to 100% of the
principal amount of the Convertible Notes being redeemed, plus accrued and
unpaid interest to, but excluding, the redemption date.
The offering is being
made pursuant to Rule 144A and Regulation S under the Securities Act of 1933
(the "Act"). The offering has not been and will not be registered
under the Act, and none of the Convertible Notes or any Silver Standard
common shares issuable upon any conversion of the Convertible Notes may be
offered or sold in the United States absent registration under the Act or the
availability of an applicable exemption from registration requirements. Offers
and sales in Canada will be made only pursuant to exemptions from the
prospectus requirements of applicable Canadian provincial or territorial
securities laws. This press release does not constitute an offer to sell or
the solicitation of an offer to buy any security.
To receive Silver
Standard's news releases by e-mail, contact Paul LaFontaine, director,
investor relations at invest@silverstandard.com or call (888) 338-0046.
Statements contained
in this news release that are not historical fact, such as statements
regarding the economic prospects of the company's projects, future plans or
future revenues, timing of development or potential expansion or
improvements, are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward looking
statements, including expectations that the offering described in this news
release will be successfully completed, or completed on terms consistent with
the terms described herein, are subject to risks and uncertainties which
could cause actual results to differ materially from estimated results. Such risks and
uncertainties include, but are not limited to, the company's ability to raise
sufficient capital to fund development, changes in economic conditions or
financial markets, changes in prices for the company's mineral products or
increases in input costs, litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments in Argentina or
Canada, technological and operational difficulties or inability to obtain
permits encountered in connection with exploration and development
activities, labour relations matters, and changing foreign exchange rates,
all of which are described more fully in the company's filings with the
Securities and Exchange Commission.
Source: Silver Standard Resources Inc.
SOURCE: Silver Standard Resources Inc.
Silver Standard Resources Inc.
Robert A. Quartermain
President
(604) 689-3846
Silver Standard Resources Inc.
Paul LaFontaine
Director, Investor Relations
N.A. Toll Free: 1-888-338-0046 or Direct: (604) 484-8212
Email: invest@silverstandard.com
Website: www.silverstandard.com