First Majestic talks $200 million five-year convertibles to yield 0.125%-0.625%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Nov. 29 – First Majestic Silver Corp. plans to price $200 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 0.125% to 0.625% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

BMO Capital Markets Corp. is the bookrunner for the Rule 144A and Regulation S offering, which carries a greenshoe of $30 million.

The notes are non-callable until Jan. 20, 2025 and then are subject to a 130% hurdle.

They are putable upon a fundamental change.

Net proceeds are expected to be $193 million or will be $222 million if the greenshoe is exercised in full.

Proceeds will be used to repurchase the company’s 1.875% convertible notes due 2023 in privately negotiated transactions.

The company intends to call the remaining 1.875% convertible notes that have not been repurchased or converted in conjunction with the offering.

The 1.875% convertible notes have $156.5 million in principal outstanding.

First Majestic is a Vancouver, B.C.-based silver and gold mining company.

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