Almonty Industries prices $700 million convertible notes offering

Almonty Industries Inc. (NASDAQ: ALM) announced the pricing of its $700 million aggregate principal amount of 2.25% convertible senior notes due 2031 in a private offering to qualified institutional buyers. The offering was oversubscribed, according to the company's statement.

The notes are scheduled to settle on June 9, 2026, subject to customary closing conditions. Almonty granted initial purchasers an option to purchase up to an additional $100 million aggregate principal amount of notes for settlement within 13 days from the initial issuance date.

The notes will accrue interest at 2.25% per annum, payable semi-annually on January 1 and July 1, beginning January 1, 2027. The notes mature on July 1, 2031, unless earlier repurchased, redeemed or converted. The initial conversion rate is 36.4950 common shares per $1,000 principal amount of notes, representing an initial conversion price of approximately $27.40 per common share.

Almonty estimates net proceeds of approximately $675.9 million, or $772.7 million if initial purchasers fully exercise their option to purchase additional notes, after deducting discounts, commissions and estimated offering expenses. The company plans to use approximately $83 million of net proceeds to fund capped call transactions, $50 million to refinance existing debt and liabilities, and $543 million for working capital and general corporate purposes, including potential acquisitions.

In connection with the pricing, Almonty entered into capped call transactions with initial purchasers and affiliates. The cap price of these transactions is $41.36 per share, representing a 100% premium over the last reported sale price of $20.68 per share on June 4, 2026.

The notes will be redeemable at Almonty's option starting July 1, 2029, under specified conditions. The closing requires regulatory approvals, including acceptance by the TSX.

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