FSM - Why Fortuna Silver Mines (FSM) Stock Is Diving | Benzinga

Fortuna Silver Mines Inc (NYSE:FSM) shares are trading lower by 15% to $5.02 during Wednesday’s session after the company announced an offering of convertible senior notes worth $150 million, due in 2029, with an option for initial purchasers to buy an additional $22.5 million in notes.

The proceeds will be used to repay bank debt, fund working capital, cover general corporate expenses, and repay existing 4.65% senior subordinated unsecured convertible debentures unless these are converted into shares before redemption. The company plans to issue a redemption notice for the current debentures before the new offering closes.

The interest rate and conversion rate for the new notes will be set based on market conditions at the time of the offering. The notes will bear semi-annual interest, be convertible into ...

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