Lithium Americas greenshoe ups 1.75% convertibles to $258.75 million

By Wendy Van Sickle

Columbus, Ohio, Dec. 9 – Underwriters for Lithium Americas Corp.’s 1.75% five-year convertible senior notes fully exercised their $33.75 million greenshoe, increasing the total deal size to $258.75 million, according to a press release.

The company priced $225 million of the convertibles on Dec. 1 with an initial conversion premium of 35%, as previously reported.

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.

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.

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