First Majestic greenshoe lifts 0.375% convertibles to $230 million

By Devika Patel

Knoxville, Tenn., Dec. 2 – Underwriters for First Majestic Silver Corp.’s offering of 0.375% five-year convertible senior notes exercised their over-allotment option in full for $30 million more of the convertibles on Thursday, increasing the size of the issue to $230 million, the company said in a press release.

As previously reported, the company sold the convertibles at par on Nov. 29 in a Rule 144A and Regulation S offering via sole bookrunner BMO Capital Markets Corp.

The convertibles have an initial conversion premium of 35% and an initial conversion price of $16.56, which equals a conversion rate of 60.3865.

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 were $222 million.

About $125.2 million of net proceeds were used to repurchase roughly $125.2 million of the company’s 1.875% convertible notes due 2023 in privately negotiated transactions.

Remaining proceeds will be used for general corporate purposes.

The company called the remaining about $31.3 million of the 2023 convertibles for redemption on Dec. 30.

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

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