Kleinberg Kaplan Advises Paulson & Co. on $250 Million Investment in Convertible Notes of Canadian Gold Mining Company

Kleinberg, Kaplan, Wolff & Cohen, P.C. recently represented long-standing client Paulson & Co. Inc., a New York-based investment management firm, on behalf of the several investment funds and accounts managed by it, in the purchase of $250 million of convertible notes, including $75 million of Class A convertible notes, as part of a $500 million private placement offering by Detour Gold Corporation, a Toronto, Canada-based mining company. Upon conversion of the Class A convertible notes, Detour will have the option to deliver either common shares or a cash amount equivalent to the then market price of such shares.

The convertible notes purchased are Detour’s 5.50 percent senior unsecured convertible notes due 2017. A syndicate of underwriters led by BMO Capital Markets, including RBC Capital Markets and UBS Securities Canada Inc. placed an additional $250 million of convertible notes.

Detour announced that it intends to use the proceeds of the offering to finance the development of its Detour Lake gold project in northeastern Ontario, Canada.

Paulson & Co. Inc. was represented by Kleinberg, Kaplan, Wolff & Cohen, P.C., with a team in New York that included Max Karpel, Mary Kuan and Kenneth Wiggins (corporate and U.S. securities) and Phil Gross (tax), and by Goodmans LLP, with a team in Toronto that included Bill Gorman, Mark Spiro and Eric Robb (Canadian securities) and Maureen Barry and Jarrett Freeman (tax).

Detour was represented in-house by Julie Galloway, Vice-President and General Counsel, and by McMillan LLP (formerly Lang Michener LLP), with a team in Toronto that included Hellen Siwanowicz, Paul Davis, Andrew Tam and David Mendicino (Canadian securities), Carl DeVuono and Craig Manuel (corporate), Eric Friedman (banking) and Kalle Soomer (tax); and with a team in Vancouver that included Herb Ono (U.S. securities).

The underwriters were represented by Fasken Martineau Demoulin LLP, with a team in Toronto that included Rob Mason and Amanda Fullerton (Canadian securities), and by Kenneth Sam (U.S. securities) of Dorsey & Whitney LLP’s Toronto office.

Kleinberg, Kaplan, Wolff & Cohen, P.C. is a leading New York law firm representing clients in transactional, regulatory, trusts and estates, tax, real estate, litigation and securities matters. Founded in 1971, the firm is nationally recognized for its work in the hedge fund industry, provides full-service legal counsel to a diverse spectrum of funds, and was named one of the top U.S. hedge fund law firms by both HFMWeek and Alpha magazine. For more information, please visit www.kkwc.com.

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