Lithium Americas talks $225 million five-year convertibles to yield 1.75%-2.25%, up 30%-35%

By Abigail W. Adams

Portland, Me., Nov. 30 – Lithium Americas Corp. plans to price $225 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 30% to 35%, according to a market source.

Deutsche Bank Securities Inc. is lead left bookrunner for the Rule 144A and Regulation S offering, which carries a greenshoe of $33.75 million.

The notes are non-callable until Dec. 6, 2024 and then are subject to a 130% hurdle.

They are putable upon a fundamental change.

Net proceeds will be used to repay debt, including amounts owed under a credit and guarantee agreement between the company and guarantors 2265866 Ontario Inc., Lithium Nevada and KV Project LLC; lenders BCP Innovation Pte. Ltd. and Ganfeng Lithium Co. Ltd.; administrative agent to lenders BNY Trust Co. of Canada; and U.S. collateral agent for the lenders the Bank of New York Mellon.

Remaining proceeds will be used for general corporate purposes.

Lithium Americas is a Vancouver, B.C.-based lithium development company.

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