FSM - Fortuna Announces Pricing of Convertible Senior Notes | Benzinga
VANCOUVER, British Columbia, June 05, 2024 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (TSX:FVI) (NYSE:FSM) ("Fortuna" or the "Company") announces that it has priced its previously announced offering of convertible senior notes due 2029 (the "Notes") in an aggregate principal amount of US$150 million (the "Offering"). The Company has granted the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional US$22.5 million aggregate principal amount of Notes. The Notes will be issued at par value.
The Notes will bear cash interest semi-annually at a rate of 3.75% per annum. The initial conversion rate for the Notes will be 151.7220 common shares of Fortuna ("Shares") per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$6.59 per Share. The initial conversion rate represents a premium of approximately 30% relative to today's closing sale price of the Shares and is subject to adjustment in certain events.
Fortuna will have the right to redeem the Notes in certain circumstances and holders will have the right to require Fortuna to repurchase their Notes upon the occurrence of certain events.
The Offering is expected to close, subject to customary closing conditions, on or about June 10, 2024.
The Company intends to use the net proceeds from the Offering to repay bank indebtedness, to fund working capital requirements, for general corporate purposes and to fund the repayment of its existing 4.65% senior subordinated unsecured convertible debentures, to the extent that such debentures are not converted into shares prior to the redemption date.
Immediately prior to the closing of the Offering, the Company intends to issue a notice of redemption in respect of the existing debentures. Holders of the existing debentures may choose to convert their debentures prior to the redemption date or receive a cash payment from the debenture trustee.
The Notes and the Shares issuable ...