McEwen Mining Inc. Prices Upsized Offering of $95 Million of Convertible Senior Notes

Core Viewpoint - McEwen Mining Inc. has announced a private placement of $95 million in convertible senior notes due 2030, with an option for an additional$15 million, aimed at qualified institutional buyers [1][12] Group 1: Transaction Details - The notes will be senior, unsecured obligations with a semi-annual interest rate of 5.25%, maturing on August 15, 2030 [3] - The initial conversion rate is set at 88.9284 shares per $1,000 principal amount, equating to an initial conversion price of approximately$11.25 per share, representing a 30% premium over the last reported sale price of $8.65 on February 6, 2025 [4][7] - The company estimates net proceeds from the offering to be approximately$91.3 million, or $105.9 million if the additional notes option is fully exercised [6] Group 2: Use of Proceeds - The proceeds will be used to pay for the capped call overlay cost of approximately$13.1 million, repay a portion of existing credit agreement borrowings, and for general corporate purposes [8] Group 3: Strategic Benefits - The offering allows the company to refinance $20 million of higher-interest debt and benefits from an attractive coupon rate of 5.25% [7] - Capped call transactions are expected to reduce potential dilution upon conversion of the notes and may offset cash payments required beyond the principal amount [9] Group 4: Market Impact - The company anticipates that the initial hedging activities related to the capped call transactions may influence the market price of its common stock and the notes [10][11]