McEwen Mining (MUX) said late Thursday that it priced a private placement offering of $95 million in convertible senior notes due 2030.
The company said the initial conversion rate for the notes is 88.9284 shares per $1,000 principal amount of notes, which translates to an initial conversion price of about $11.25 per share.
The notes will be convertible into cash, McEwen Mining's common stock, or a combination of both at the company's discretion, it added.
As part of the deal, the company said it granted the initial purchaser the option to purchase up to an additional $15 million of notes, to be settled within 13 days from the initial issuance.
The company said the notes will carry an interest rate of 5.25% per year, with interest payments due semi-annually, beginning Aug. 15.
McEwen Mining said it plans to use the net proceeds from the offering, expected to close on Feb. 11, for several purposes, including covering the cost of a capped call overlay, repaying approximately $20 million of outstanding borrowings under its existing credit agreement, and funding general corporate needs.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.