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First Majestic greenshoe ups 1.875% convertibles to $156.5 million
By Susanna Moon
Chicago, Feb. 15 – First Majestic Silver Corp. said underwriters exercised $6.5 million of the over-allotment option Thursday on its 1.875% five-year convertible notes.
The partial greenshoe exercise brings the total deal size to $156.5 million.
The over-allotment notes have the same terms as the initial issue, including an initial conversion rate of 104.3297 common shares per $1,000 principal amount, for an initial conversion price of $9.59 per share, according to a 6-K filing with the Securities and Exchange Commission.
The company’ stock (Toronto: AG) closed at C$7.49 on Wednesday.
As reported First Majestic priced $150 million of the five-year convertibles before the market open on Jan. 25 with an initial conversion premium of 35%.
BMO Capital Markets, TD Securities and Scotiabank are joint bookrunners for the Rule 144A and Regulation S deal, which carried a greenshoe of $22.5 million.
Price talk had been for a coupon of 1.75% to 2.25% and an initial conversion premium of 32.5% to 37.5%.
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.
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