Free Writing Prospectus
Filed Pursuant to Rule 433
Registration No. 333-142656
May 15, 2007
Filed Pursuant to Rule 433
Registration No. 333-142656
May 15, 2007
Gold Reserve Inc $90,000,000 Convertible Senior Subordinated Notes due 2022 |
 |
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| Security Information | ||
Company name
|
Gold Reserve Inc | |
Security
|
Convertible Senior Subordinated Notes | |
Registration format
|
Registered | |
CUSIP
|
38068NAB4 | |
ISIN
|
US38068NAB47 | |
Ranking
|
Senior Subordinated | |
Common stock ticker
|
AMEX: “GRZ” / TSX: “GRZ” | |
| Size | ||||||||
| Bonds | Deal size | |||||||
Base deal |
90,000 | $ | 90,000,000 | |||||
Underwriters’ option |
13,500 | $ | 13,500,000 | |||||
Total |
103,500 | $ | 103,500,000 | |||||
| Terms | ||||
Par amount per bond |
$ | 1,000 | ||
Issue price |
$ | 1,000 | ||
Coupon |
5.50 | % | ||
Last sale of common |
$ | 6.00 | ||
Price of common offering |
$ | 5.80 | ||
Conversion price |
$ | 7.54 | ||
Conversion rate |
132.6260 |
| Dates | ||||
Trade Date |
05/15/07 | |||
Settlement Date |
05/18/07 | |||
Maturity |
15 years | |||
Maturity Date |
06/15/22 | |||
Coupon Payment Dates |
06/15,12/15 | |||
First Coupon Date |
12/15/07 | |||
 |
 |
| Call Schedule | ||||||||
| Provisional call date | Call trigger | Call Price | ||||||
6/16/2010 - 06/15/2012 |
150.00 | % | 100 | % | ||||
Freely callable thereafter |
||||||||
| Put Schedule | ||||
| Put schedule | Put Price | |||
6/15/2012 |
100 | % | ||
| Underwriters’ Economic Breakdown | Economics | |||||||
Bookrunners |
JPMorgan | 60.00 | % | |||||
| RBC Capital Markets | 30.00 | % | ||||||
Co-manager |
Cormark Securities | 10.00 | % | |||||
Underwriting discount and commissions |
$ | 42.50 | ||||||
Selling concessions |
$ | 25.50 | ||||||
Management fee |
$ | 8.50 | ||||||
Underwriting fee |
$ | 8.50 | ||||||
The issuer has filed a registration statement (including a
prospectus) with the Securities and Exchange Commission, or SEC,
for the offerings to which this communication relates. Before you
invest, you should read the prospectuses (and the supplements
thereto) in those registration statements and other documents the
issuer has filed with the SEC for more complete information about
the issuer and these offerings. You may get these documents for
free by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the issuer, any underwriter or any dealer
participating in these offerings will arrange to send you the
prospectus if you request it by calling toll free 1-866-430-0686.
Adjustment to shares delivered upon conversion upon certain fundamental changes
| Assumptions | ||||
Price of common offering |
$ | 5.80 | ||
Conversion
premium |
30.00% | |||
Conversion
price |
$ | 7.54 | ||
Face value |
$ | 1,000.00 | ||
Conversion rate |
132.6260 |
Share price
| Effective date | $5.80 | $7.00 | $9.00 | $11.00 | $13.00 | $15.00 | $17.00 | $19.00 | $21.00 | $23.00 | ||||||||||||||||||||||||||||||
05/18/07 |
39.7878 | 34.5009 | 21.4924 | 14.4905 | 10.3102 | 7.6156 | 5.7757 | 4.4618 | 3.4900 | 2.7512 | ||||||||||||||||||||||||||||||
06/15/08 |
39.7878 | 32.5417 | 19.2638 | 12.4086 | 8.4881 | 6.0702 | 4.4831 | 3.3894 | 2.6036 | 2.0199 | ||||||||||||||||||||||||||||||
06/15/09 |
39.7878 | 29.9607 | 16.1232 | 9.3646 | 5.8018 | 3.8099 | 2.6318 | 1.8952 | 1.4077 | 1.0668 | ||||||||||||||||||||||||||||||
06/15/10 |
39.7878 | 27.1963 | 12.1968 | 4.3679 | 0.8623 | 0.1727 | 0.0996 | 0.0757 | 0.0572 | 0.0418 | ||||||||||||||||||||||||||||||
06/15/11 |
39.7878 | 23.5384 | 8.7303 | 1.1634 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||
06/15/12 |
39.7878 | 12.3687 | 0.6551 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||
The exact share prices and effective dates may not be set forth in the table above, in which case:
| • | If the share price is between two share price amounts in the table or the effective date is between two effective dates in the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower share price amounts and the two dates, as applicable, based on a 365-day year. | |
| • | If the share price is greater than $23.00 per share (subject to adjustment), no additional shares will be issued upon conversion | |
| • | If the share price is less than $5.80 per share (subject to adjustment), no additional shares will be issued upon conversion. |
Notwithstanding the foregoing, in no event will the total number of common shares issuable upon
conversion exceed 172.4138 per $1,000 principal amount, subject to adjustments in the same manner as
the conversion rate as set forth under “— Conversion Rate Adjustments.”