Endeavour Silver launches $300 million convertible notes offering

Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) announced it is offering $300 million in unsecured convertible senior notes due 2031 through a private placement. The company expects to grant initial purchasers an option to purchase up to an additional $45 million in notes.

The Vancouver-based silver producer plans to use net proceeds to repay its senior secured debt facility with ING Capital LLC and Societe Generale, fund advancement of its Pitarrilla project in Durango State, Mexico, and for general corporate purposes including strategic opportunities.

The notes will bear cash interest semi-annually at a fixed rate and will be convertible by holders into Endeavour common shares. The company retains the right to redeem the notes under certain circumstances, while holders can require repurchase upon occurrence of certain events.

The offering requires customary closing conditions including approval from the Toronto Stock Exchange and New York Stock Exchange. Final terms will be determined by Endeavour and initial purchasers.

The notes will be offered only to qualified institutional buyers in the United States and outside the U.S. in accordance with Regulation S under the Securities Act. In Canada, the notes may only be sold pursuant to exemptions from prospectus requirements under applicable securities laws.

Endeavour operates four mines in Mexico and Peru and maintains exploration projects across Mexico, Chile, and the United States. The information is based on a company press release statement.

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