New Issue: Apex Silver upsized $100 million overnight convertible at 4.0%, up 36%

Nashville, Oct. 12 - Apex Silver Ltd. sold an upsized $100 million of 20-year convertible notes at par to yield 4.0% with a 36% initial conversion premium via sole bookrunner Citigroup Global Markets Inc. The overnight Rule 144A deal was upsized from $75 million.

Coupon payments will be collateralized for three years with Treasuries.

Apex Silver plans to use remaining proceeds, after collateralization, to finance a portion of the construction and development of its San Cristobal project, for advance evaluation of exploration properties and for other general purposes. The Denver-based mining concern owns the San Cristobal silver-zinc project, a large open-pit silver-zinc development in Bolivia.

Terms of the deal are:

Issuer:	Apex Silver Ltd.
Issue:	Convertible senior subordinated notes
Bookrunner:	Citigroup Global Markets Inc.
Amount:	$100 million, up from $75 million
Greenshoe:	$50 million, down from $75 million
Maturity:	Sept. 15, 2024
Dividend:	4.0%
Price:	Par
Yield:	4.0%
Conversion premium:	36%
Conversion price:	$28.62
Conversion ratio:	34.9406
Contingent conversion:	120%
Contingent payment:	No
Call:	140% hurdle for 10 years, with coupon make-whole
Put:	In years 10 and 15
Dividend protection:	Yes, via conversion ratio adjustment
Takeover protection:	Yes, via premium make-whole
Pricing date:	Oct. 11, after the close
Settlement date:	Oct. 15
Distribution:	Rule 144A

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