First Majestic (AG) Sheds 4% on Silver Drop, $350-Million Notes Issuance

We recently published 10 Stocks Losing Their Fire. First Majestic Silver Corp. (NYSE:AG) is one of the worst performers on Thursday.

First Majestic declined by 4.27 percent on Thursday to close at $15.02 apiece as investor sentiment was dampened by plans to raise up to $350 million in fresh funds from the issuance of convertible notes, while also digesting the drop in spot prices of silver during the day.

During intra-day trading, the company dropped by as much as 5.4 percent.

As of writing, spot prices of silver were down by 2.49 percent at $57.0298 per troy ounce, as investors appeared to have taken profits following last week’s surge.

Copyright: joebelanger / 123RF Stock Photo

In other developments, First Majestic Silver Corp. (NYSE:AG) officially kicked off the issuance of convertible senior notes due 2031 with an aggregate principal amount of $300 million and an overallotment option of up to $50 million.

Under the terms, the notes will carry a cash interest of 0.125 percent per annum, payable semi-annually. Before the maturity date, noteholders will have the option to convert their notes.

First Majestic Silver Corp. (NYSE:AG) said that every $1,000 note will be convertible to 44.7227 common shares, equivalent to an initial conversion price of $22.36 apiece, or a premium of approximately 42.50 percent over its closing price of $15.69.

The offer is expected to close on Monday, December 8, subject to customary closing conditions.

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Disclosure: None. This article is originally published at Insider Monkey.