McEwen Mining Inc. announced on February 7, 2025, the pricing of its upsized offering of $95 million aggregate principal amount of 5.25% convertible senior notes due 2030. The company also granted initial purchasers an option to buy an additional $15 million aggregate principal amount of notes.
The initial conversion rate for the notes is 88.9284 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $11.25 per share, representing a 30% premium over the closing sale price on February 6, 2025. Capped call transactions are expected to synthetically increase the effective conversion price to $17.30 per share, a 100% premium.
The estimated net proceeds from the offering are approximately $91.3 million, or $105.9 million if the option for additional notes is fully exercised. These proceeds are designated to pay for the capped call overlay, repay a portion of outstanding borrowings under the existing credit agreement, and for general corporate purposes.
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