Lithium Americas (TSX: LAC) is evidently looking to take advantage of the current positive sentiment within the lithium space. The company last night announced that it is looking to raise up to US$225.0 million via the issuance of convertible senior notes.
Under the proposed offering, the firm will look to raise the $225.0 million via five year unsecured notes, which are due in 2027. Interest is to be payable semi-annually, however the firm has not yet settled on an interest rate, or the conversion rate of the notes.
Notes are said to be convertible at the option of the holder after October 15, 2026, while the company can choose to redeem the notes after December 6, 2024, in the form of either cash or shares, provided the equity has appreciated 130% from the conversion price.
Sponsored · Cambria Gold Mines
A US$33.8 million over-allotment option has also been issued in connection with the financing.
Proceeds from the financing are to be used to repay debt, particularly under its amended and restated credit and guarantee agreement entered into in 2017, as well as for general corporate purposes.
Lithium Americas last traded at $50.40 on the TSX.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
