McEwen Mining Inc. announced on February 6, 2025, its intention to offer $85 million in aggregate principal amount of convertible senior notes due 2030. The offering is planned as a private placement to qualified institutional buyers.
The company also expects to grant the initial purchaser an option to acquire an additional $15 million aggregate principal amount of notes. These notes will be senior, unsecured obligations of McEwen Mining, with interest payable semi-annually.
Proceeds from the offering are intended to cover the cost of capped call overlay, repay approximately $20 million of outstanding borrowings under the company’s existing credit agreement, and be used for general corporate purposes. Capped call transactions are expected to reduce potential dilution to common stock upon conversion.
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