On December 1st, Endeavour Silver Corp. announced the launch of a private offering of US$300 million in unsecured convertible senior notes due 2031, with an option for initial purchasers to buy an additional US$45 million.
The company plans to use the proceeds to repay its senior secured credit facility with ING Capital and Societe Générale, to advance the Pitarrilla silver project in Durango, Mexico, and for general corporate and strategic purposes.
The Notes will pay semi-annual cash interest at a fixed rate and will be convertible into Endeavour common shares. They may be redeemed by the company under certain conditions, while holders will also have the right to require repurchase upon specified events.
The Offering is subject to customary closing conditions, including approvals from the Toronto Stock Exchange and New York Stock Exchange. The Notes and underlying shares are unregistered under U.S. and Canadian securities laws and will be offered only to qualified institutional buyers (Rule 144A) in the U.S. and non-U.S. investors under Regulation S.
