Equinox Gold greenshoe ups five-year convertibles to $172.5 million

By Mary-Katherine Stinson

Lexington, Ky., Sept. 22 – The initial purchasers of Equinox Gold Corp.’s 4.75% convertible senior notes due 2028 exercised their $22.5 million over-allotment option in full on Thursday, increasing the size of the issue to $172.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced the original $150 million issue after the market close on Sept. 18 at par with a coupon of 4.75% and an initial conversion premium of 20%.

BMO Capital Markets led the bought deal, which was marketed via Rule 144A and Regulation S.

The notes are non-callable for three years and then subject to a 130% hurdle.

They are putable upon a fundamental change.

Proceeds will be used to repay debt and for general corporate purposes.

“This debt financing enables us to pay down part of our revolving credit facility, providing immediate interest savings while also positioning us to manage the upcoming maturity of our April 2024 $140 million convertible notes. The new 2028 notes have a lower interest rate, substantially higher conversion price, no covenants and are unsecured, while extending debt maturity to October 2028,” Equinox Gold president and CEO Greg Smith said in the press release.

Equinox Gold is a Vancouver, B.C.-based mining company.

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