- Lithium Americas (LAC) announced that the initial purchasers under its previously announced offering have fully exercised their over-allotment option
- The initial purchasers have acquired an additional US$33,750,000, increasing the total offering to US$258,750,000
- The company has used a portion of the net proceeds from the offering to fully repay its US$205 million senior secured credit facility
- Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada
- Lithium Americas Corp. (LAC) opened trading at C$43.25 per share
Lithium Americas (LAC) announced that the initial purchasers under its senior notes offering have fully exercised their over-allotment option.
The initial purchasers under the previously announced offering have acquired an additional US$33,750,000 aggregate principal amount of notes, increasing the total offering to US$258,750,000.
Jon Evans, President and CEO commented on the offering.
“With the offering complete and our US$205 million senior secured facility fully repaid, we have significantly enhanced our balance sheet while minimizing potential dilution to shareholders and reducing interest cost.”.
He added,
“Additionally, by removing security over Thacker Pass, we increase our flexibility as we continue to advance the strategic partnership and financing process.”
The initial purchasers were Deutsche Bank Securities Inc. and Clarksons Platou Securities AS, which acted as joint book-running managers, BMO Capital Markets Corp., Canaccord Genuity LLC and TD Securities Inc., which acted as passive book-running managers, and B. Riley Securities, Inc., Cormark Securities Inc., Cowen and Company, LLC, National Bank Financial Inc., Scotia Capital (USA) Inc., Stifel, Nicolaus & Company, Incorporated, Industrial Alliance Securities Inc., and Tuohy Brothers Investment Research Inc., which acted as co-managers.
The company has used a portion of the net proceeds from the offering to fully repay its US$205 million senior secured credit facility. Lithium Americas intends to use the remainder of the net proceeds to repay other indebtedness and for general corporate purposes.
The notes, including those issued pursuant to the over-allotment option, are unsecured and will accrue interest payable semi-annually in arrears at a rate of 1.75 per cent per annum on January 15 and July 15 of each year, beginning on July 15, 2022.
Prior to October 15, 2026, the notes will be convertible at the option of the holders. Upon conversion, the notes may be settled, at the company’s election, in common shares, cash or a combination thereof. The initial conversion rate for the Notes will be 21.2307 shares per US$1,000, equivalent to an initial conversion price of approximately US$47.10 per share.
The notes will mature on January 15, 2027, unless earlier repurchased, or converted.
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada.
Lithium Americas Corp. (LAC) opened trading at C$43.25 per share.