Loan & DebtAug 6, 2026, 06:57 AM
Lithium Americas Secures $175M Convertible Debenture Financing
AI Summary
Lithium Americas Corp. entered into a Securities Purchase Agreement with YA II PN, Ltd. for up to $175 million in subordinated convertible debentures. The company will initially issue $150 million, with an option for an additional $25 million, to strengthen its balance sheet and fund the Thacker Pass project. The financing provides additional liquidity as the project approaches peak construction, complementing existing funding from a DOE loan and strategic investments.
Key Highlights
- Secured up to $175 million in aggregate principal amount of subordinated convertible debentures.
- Initially issued $150 million in debentures, with an option for an additional $25 million.
- Debentures have a 5-year maturity with a 5% annual interest rate, potentially increasing to 7.50% or 15% under certain conditions.
- Proceeds will be used for general corporate purposes, including funding corporate/project overhead, capital expenditures, and debt repayment.
- Conversion price is the lower of a fixed price (140% of NYSE closing or $3.79) or 95% of the lowest 5-day VWAP, subject to a floor.
- Cash repayments of principal are limited to $35 million while existing Orion notes are outstanding.
- Investor conversion is capped at 19.99% of outstanding Common Shares without stockholder approval.
Price Impact
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