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Fortuna Silver Mines Shares Down on Plan to Offer Up To $172.5 Million in Convertible Notes

By Adriano Marchese

 

Fortuna Silver Mines shares were sharply lower Wednesday morning after the company said it is looking to raise up to $172.5 million by way of convertible senior notes offering.

Shares were trading more than 17% lower to 6.71 Canadian dollars ($4.91).

The Canadian silver miner is offering convertible senior notes due 2029 for a base amount of $150 million and said it plans to grant initial purchasers the option to buy up to $22.5 million more over the next 15 days.

Fortuna plans to use the proceeds to primarily pay its bank debt and to fund working capital requirements.

The company also plans to repay its existing unsecured convertible debentures carrying a rate of 4.65%, the holders of which will have the option to convert their debentures or receive a cash payments.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

June 05, 2024 10:41 ET (14:41 GMT)

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