First Majestic completes US$156.5M note offering

On January 29, 2018, and February 15, 2018, First Majestic Silver Corp. completed the issuance of US$156.5 million aggregate principal amount of 1.875 per cent unsecured senior convertible notes due 2023, including notes issued pursuant to the partial exercise of an over-allotment option granted to the initial purchasers.

The notes have an initial conversion rate of 104.3297 First Majestic common shares per US$1,000 principal amount of notes.

The initial purchasers for the offering were BMO Capital Markets Corp., TD Securities Inc., Scotia Capital (USA) Inc. and J.P. Morgan Securities LLC.

Proceeds of the offering are expected to be used in connection with the proposed acquisition by First Majestic of all of the issued and outstanding shares of Primero Mining Corp. pursuant to a previously announced arrangement agreement and for general corporate purposes and, if the acquisition is not consummated, for general corporate purposes.

First Majestic was advised in Canada by McCullough O’Connor Irwin LLP with a team led by James Beeby that included Mia Bacic, Lisa Stewart, Katie Blundy and Tajinder Rathor. Mexican counsel to First Majestic was Fernando Todd Dip and Jorge García Díaz of Todd y Asociados, S.C. In the United States, First Majestic was represented by Daniel Miller, Anthony Epps and Erin McCrady of Dorsey & Whitney LLP. For tax matters, First Majestic was represented by Michael McLaren and Michael Colborne of Thorsteinssons LLP.

The initial purchasers were advised in Canada by Blake, Cassels & Graydon LLP with a team led by Bob Wooder and Kathleen Keilty that included Evan Straight and Nikita Pomerov (securities) and Kevin Zimka (tax). In the US, the initial purchasers were represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP with a team led by Chris Cummings, that included Adam Givertz, Steve Centa, Ronnie Ollo, Harrison Cruikshank and Thea Winterton-Perks (corporate) and David Mayo and Eric Hunter (tax).