| Filed Pursuant to Rule 433 | ||
| Registration No. 333-141410 | ||
| March 20, 2008 | ||
NovaGold Resources Inc. $95,000,000 5.50% Senior Convertible Notes due May 1, 2015 |
 |
| Security Information | ||
Company name |
NovaGold Resources Inc. | |
Security |
Senior Convertible Notes | |
Registration format |
Registered | |
CUSIP |
66987E AA5 | |
ISIN |
US66987EAA55 | |
Ranking |
Senior Unsecured | |
Common stock ticker |
AMEX: “NG” / TSX: “NG” | |
| Size | ||||||||
| Bonds | Proceeds | |||||||
Base deal |
95,000 | $ | 95,000,000 | |||||
Purchasers’ option |
14,000 | $ | 14,000,000 | |||||
Total |
109,000 | $ | 109,000,000 | |||||
| Terms | ||||
Par amount per bond
|
$ | 1,000 | ||
Issue price
|
$ | 1,000 | ||
Coupon
|
5.50 | % | ||
Conversion premium
|
35.00 | % | ||
Last sale of common
|
$ | 7.86 | ||
Conversion price
|
$ | 10.61 | ||
Conversion ratio
|
94.2418 | |||
| Dates | ||
Trade Date
|
03/20/08 | |
Settlement Date
|
03/26/08 | |
Maturity
|
7 Years | |
Maturity Date
|
05/01/15 | |
Coupon Payment Dates |
05/01, 11/01 | |
First Coupon Date |
11/01/08 | |
| Put Schedule | ||||
| Put Schedule | Put Price | |||
05/01/13
|
100 | % | ||
| Underwriting | Economics | |||||
Bookrunner
|
JPMorgan | 100.00 | % | |||
| Economics Breakdown | ||||||||
Gross Spread (per bond)
|
$ | 30.000 | 3.000% | |||||
Management (per bond)
|
$ | 6.000 | 20% (of gross spread) | |||||
Underwriting (per bond)
|
$ | 6.000 | 20% (of gross spread) | |||||
Selling Concession (per bond)
|
$ | 18.000 | 60% (of gross spread) | |||||
The issuer has filed a registration statement (including a short form base shelf prospectus, dated
April 16, 2007, and a preliminary prospectus supplement dated March 19, 2008) with the Securities
and Exchange Commission, or SEC, for the offerings to which this communication relates. Before you
invest, you should read the preliminary prospectus supplement, the accompanying base shelf
prospectus and the other documents the issuer has filed with the SEC for more complete information
about the issuer and this offering. 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.
| * | All references to dollar amounts are references to U.S. dollars. |
Adjustment to shares delivered upon conversion upon certain fundamental changes
| Assumptions | ||||
Stock price at issue |
$ | 7.86 | ||
Conversion premium |
35.00 | % | ||
Conversion price |
$ | 10.61 | ||
Face value |
$ | 1,000.00 | ||
Conversion ratio |
94.2418 |
| Effective date | $7.86 | $10.00 | $12.50 | $15.00 | $17.50 | $20.00 | $22.50 | $25.00 | $27.50 | $30.00 | $32.50 | $35.00 | $37.50 | $40.00 | ||||||||||||||||||||||||||||||||||||||||||
March 26, 2008 |
32.9846 | 24.3039 | 16.9140 | 12.4056 | 9.4206 | 7.3273 | 5.7958 | 4.6389 | 3.7432 | 3.0362 | 2.4696 | 2.0100 | 1.6338 | 1.3236 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2009 |
32.9846 | 24.3028 | 16.9127 | 12.4042 | 9.4195 | 7.3264 | 5.7951 | 4.6383 | 3.7427 | 3.0358 | 2.4693 | 2.0098 | 1.6337 | 1.3235 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2010 |
32.9846 | 24.3016 | 16.9113 | 12.4030 | 9.4184 | 7.3255 | 5.7943 | 4.6377 | 3.7422 | 3.0355 | 2.4690 | 2.0096 | 1.6335 | 1.3234 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2011 |
32.9846 | 24.3150 | 16.9218 | 12.4116 | 9.4258 | 7.3320 | 5.8002 | 4.6431 | 3.7472 | 3.0401 | 2.4734 | 2.0137 | 1.6374 | 1.3270 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2012 |
32.9846 | 24.3287 | 16.9323 | 12.4202 | 9.4331 | 7.3385 | 5.8060 | 4.6484 | 3.7521 | 3.0447 | 2.4777 | 2.0178 | 1.6413 | 1.3307 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2013 |
32.9846 | 24.3275 | 16.9309 | 12.4189 | 9.4320 | 7.3375 | 5.8052 | 4.6478 | 3.7517 | 3.0443 | 2.4774 | 2.0176 | 1.6411 | 1.3307 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2014 |
32.9846 | 24.3263 | 16.9295 | 12.4176 | 9.4309 | 7.3366 | 5.8045 | 4.6472 | 3.7512 | 3.0440 | 2.4772 | 2.0174 | 1.6410 | 1.3306 | ||||||||||||||||||||||||||||||||||||||||||
May 1, 2015 |
32.9846 | 24.2959 | 16.9046 | 12.3966 | 9.4128 | 7.3208 | 5.7905 | 4.6347 | 3.7398 | 3.0336 | 2.4677 | 2.0087 | 1.6329 | 1.3231 | ||||||||||||||||||||||||||||||||||||||||||
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 $40.00 per share (subject to adjustment), no additional shares
will be issued upon conversion.
• If the share price is less than $7.86 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 127.2264 per $1,000 principal amount, subject to adjustments in the same manner
as the conversion rate as set forth in the prospectus supplement under “Description of notes —
Conversion Rate and Adjustments.”