Add as a preferred source on GoogleSigma Lithium Upsizes Convertible Bond Sale to $125 Million
The 7% bonds are intended to replace Synergy Capital debt that carried an 11.45% floating rate when the offering was announced.
Sigma Lithium Corporation priced an upsized $125 million convertible bond offering on Nov. 2 to refinance its higher-cost Synergy Capital debt and move repayment beyond the loan’s June 2027 deadline.
The company expanded the sale from $100 million, a 25% increase. The senior unsecured bonds carry a 7% fixed annual coupon and mature in 2031. Holders can require repayment around November 2029, before final maturity.
Sigma intends to use the net proceeds to repay its secured Synergy Capital debt in full. Any proceeds left after that repayment are intended for growth spending and general corporate purposes. The existing loan carries a floating rate equal to the Secured Overnight Financing Rate plus 6.95%, which stood at 11.45% when Sigma announced the offering.
Sigma had moved the Synergy debt’s repayment deadline from December 2026 to June 2027.
The bonds convert into CHESS Depositary Interests (CDIs) at $6.51 per CDI. Each CDI represents one Sigma common share. The conversion price is 25% above Sigma’s $5.21 Nasdaq closing price on Nov. 2, and holders generally can begin converting 12 months after closing.
Sigma expects the offering to close around Nov. 16, subject to regulatory and exchange approvals.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.