Lithium Americas prices $225M of convertible notes offering

• Lithium Americas (NYSE:LAC) has priced its offering of $225M of 1.75% convertible senior notes due 2027 .
• Initial purchasers are granted an option to purchase up to an additional $33.75M of notes.
• The initial conversion rate will be 21.2307 shares per $1,000 principal amount of Notes, (equivalent to ~$47.10/share).
• Net proceeds will be used to repay indebtedness, and for general corporate purposes.
• Closing date is December 6, 2021.
• Previously (Nov. 30): Lithium Americas slumps after announcing offering of $225M convertible senior notes

Comments

[U6439892]

This is a good deal -

- it gives them access to cash and avoids any funding concerns
- the rate of notes is very reasonable and the share conversion price of $47 is very attractive

[Xxfactor]

Goodbye sky high stock price. I don't think a lot of people realize LAC has never even mined one ounce of lithium yet.

[Federico Cuneo]

Good conversion price and it is not certain that eventually will be any dilution, although is mostly likely, the company can redeem the convertible when the price goes over $61.23.

The Notes will be convertible at the option of holders, prior to the close of business on the business day immediately preceding October 15, 2026, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the business day immediately preceding the maturity date. Upon conversion, the Notes may be settled, at the Company’s election, in cash, common shares (“Common Shares”) of the Company or a combination thereof. The Notes will not be redeemable at the Company’s option prior to December 6, 2024, except upon the occurrence of certain tax law changes. On or after December 6, 2024, the Notes will be redeemable at the Company’s option if the last reported sale price of the Common Shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

[Sthatcher]

Nice deal LAC 😎