First Majestic launches $300 million convertible notes offering

First Majestic Silver Corp. (NYSE: AG) (TSX: AG) announced it is offering $300 million in unsecured convertible senior notes due 2031 through a private placement. The Vancouver-based mining company expects to grant initial purchasers an option to buy an additional $45 million in notes.

The company plans to use proceeds to repurchase a portion of its outstanding 0.375% convertible senior notes due 2027 and for general corporate purposes, including strategic opportunities. The notes will bear cash interest semi-annually at a fixed rate and will be convertible into First Majestic common shares.

First Majestic retains the option to redeem the notes under certain circumstances, while holders can require the company to repurchase their notes upon specific events. Final terms will be determined by First Majestic and the initial purchasers.

The notes and underlying shares have not been registered under the U.S. Securities Act of 1933 or qualified by a prospectus in Canada. They may not be offered or sold in the United States without registration or applicable exemption, and cannot be offered or sold in Canada except under exemptions from prospectus requirements.

First Majestic operates four underground mines in Mexico: Los Gatos Silver Mine (70% interest), Santa Elena Silver/Gold Mine, San Dimas Silver/Gold Mine, and La Encantada Silver Mine. The company also holds development and exploration assets, including the Jerritt Canyon Gold project in Nevada.

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