Chicago, Dec. 1 – Lithium Americas Corp. priced $225 million 1.75% five-year convertible senior notes on Wednesday with an initial conversion premium of 35%, according to a press release.
Pricing came at the rich end of coupon talk of 1.75% to 2.25% and at the rich end of talk for an initial conversion premium of 30% to 35%, according to information from a market source.
Deutsche Bank Securities Inc. (lead left) and Clarksons Platou Securities AS are bookrunners 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 to repay debt, including the $250 million senior secured credit facility, and for general corporate purposes.
Lithium Americas is a Vancouver, B.C.-based lithium development company.
| Issuer: | Lithium Americas Corp.
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| Amount: | $225 million
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| Greenshoe: | $33.75 million
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| Securities: | Convertible senior notes
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| Maturity: | Jan. 15, 2027
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| Placement agents: | Deutsche Bank Securities Inc. and Clarksons Platou Securities AS
|
| Coupon: | 1.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $47.10
|
| Conversion rate: | 21.2307
|
| Call options: | Non-callable until Dec. 6, 2024, then subject to 130% hurdle
|
| Put options: | Upon a fundamental change
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| Pricing date: | Dec. 1
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| Settlement date: | Dec. 6
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| Distribution: | Rule 144A and Regulation S
|
| Stock symbol: | NYSE: LAC
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| Stock reference price: | $34.89
|
| Market capitalization: | C$5.39 billion
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