Pan American to make early conversion offer for 5.25% convertibles

New York, Feb. 27 - Pan American Silver Corp. said it plans to encourage early conversion of its $86.25 million principal amount of 5.25% convertible debentures due 2009.

Pan American will make an offer of the interest payable up to the first forced conversion date of July 31, 2006, which totals $131.25 per $1,000 principal amount, plus $40 per $1,000 principal amount of common stock.

Investors holding 50% of the outstanding principal amount have indicated they would convert if a formal offer is made, the company added.

If all holders accept, Pan American would pay $11.32 million and issue $3.45 million of stock.

The offer is expected to be formally announced by the end of March and will then run for 30 days. Pan American said there will be no minimum tender condition.

The Vancouver, B.C., silver mining company priced the convertibles on July 21, 2003.

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