By Abigail W. Adams
Portland, Me., Jan. 25 – First Majestic Silver Corp. priced $150 million in five-year convertible notes prior to the market open on Thursday within talk with a coupon of 1.875% and an initial conversion premium of 35%.
Price talk had been 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, the release said.
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.
| Issuer: | First Majestic Silver Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | March 1, 2023
|
| Coupon: | 1.875%
|
| Price: | Par
|
| Initial conversion premium: | 35%
|
| Conversion price: | $9.59
|
| Conversion rate: | 104.3297
|
| Call: | Non-callable for three years then subject to a 130% hurdle
|
| Bookrunners: | J.P. Morgan and Morgan Stanley
|
| Pricing date: | Jan. 25
|
| Settlement: | Jan. 29
|
| Distribution: | Rule 144A/Regulation S
|
| Stock symbol: | NYSE: AG, TSX: FR
|
| Stock price: | $7.10 at market close Jan. 24
|
| Market capitalization: | $1.18 billion
|
| Price talk: | Coupon of 1.75% to 2.25% and an initial conversion premium of 32.5% to 37.5%
|
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