Silvercorp Metals Inc. initiated a private placement offering of US$130,000,000 aggregate principal amount of convertible senior notes due 2029. The company also granted initial purchasers an option to acquire an additional US$20,000,000 in notes, exercisable within 20 days of closing.
The notes are senior unsecured obligations, accruing interest semi-annually at a rate of 4.75% per annum and maturing on December 15, 2029. The initial conversion rate is 216.0761 common shares per $1,000 principal amount, equating to an initial conversion price of approximately US$4.63 per share.
This conversion price represents a premium of approximately 30% over the company's common share closing price of US$3.56 on November 20, 2024. Silvercorp intends to use the net proceeds from this offering to fund the construction of copper-gold mining projects outside of China, for the exploration and development of other projects, and for general working capital purposes.
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