- Lithium Americas (LAC) has priced its offering of US$225,000,000 aggregate principal amount of convertible senior notes due 2027
- The notes will accrue interest payable semi-annually in arrears at a rate of 1.75 per cent per annum, beginning on July 15, 2022
- The initial conversion rate for the notes will be 21.2307 shares per US$1,000, representing a premium of 35 per cent to the last reported sale price of the shares on the NYSE
- The notes will mature on January 15, 2027, unless earlier repurchased, redeemed or converted
- The offering is expected to close on or about December 6, 2021
- Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada
- Lithium Americas Corp. (LAC) opened trading at C$44.75 per share
Lithium Americas (LAC) has priced its offering of US$225,000,000 aggregate principal amount of convertible senior notes due 2027.
The company has granted the initial purchasers an over-allotment option to purchase up to an additional US$33,750,000 aggregate principal amount of notes, exercisable at any time until 30 days after the pricing of the offering.
The notes will accrue interest payable semi-annually in arrears at a rate of 1.75 per cent per annum, beginning on July 15, 2022.
Prior to October 15, 2026, the notes will be convertible into common shares, cash or a combination of both. The initial conversion rate for the notes will be 21.2307 shares per US$1,000 principal amount of notes. The initial conversion price of the notes represents a premium of approximately 35 per cent to the last reported sale price of the shares on the New York Stock Exchange.
Net proceeds will be used to service debt and for general corporate purposes.
The notes will mature on January 15, 2027, unless earlier repurchased, redeemed or converted. The company may not redeem the notes prior to December 6, 2024.
The offering is expected to close on or about December 6, 2021, subject to the approval of the Toronto Stock Exchange and the NYSE.
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada.
Lithium Americas Corp. (LAC) opened trading at C$44.75 per share.
