First Majestic talks $150 million convertibles to yield 1.75% to 2.25%, up 32.5% to 37.5%

By Abigail W. Adams

Portland, Me., Jan. 24 – First Majestic Silver Corp. plans to price $150 million in five-year convertible notes after the market close on Wednesday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

BMO Capital Markets, TD Securities and Scotiabank are joint bookrunners for the Rule 144A and Regulation S deal, which carries a greenshoe of $22.5 million, according to a company release.

The notes are non-callable for three years, except in certain circumstances, then callable subject to a 130% hurdle.

Circumstances in which the notes may be redeemed in the first three years include the non-acquisition of Primero Mining, according to a company release.

There are no investor puts, but holders will have the right to require First Majestic to repurchase the notes on certain events, according to a company release.

Proceeds will be used to fund the recently announced acquisition of Primero Mining Corp. and for general corporate purposes.

First Majestic is a Vancouver, B.C.-based mining company focused on silver production in Mexico.

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