06:55 AM EDT, 06/06/2024 (MT Newswires) -- Fortuna Silver Mines Inc. ( FSM ) , which fell 14% in Canada yesterday after hitting a 52-week high last week, said on Thursday that it has priced its US$150 million ($205.4 million) offering of convertible senior notes due 2029.

The notes will bear cash interest semi-annually at 3.75% per annum. The offering is expected to close by June 10. The company has granted the initial purchasers of the notes an option for 15 days to buy up to an additional US$22.5 million of the notes, which will be issued at par value.

The company plans to use the proceeds to repay bank debt, to fund working capital requirements, for general corporate purposes and to fund the repayment of its existing 4.65% senior subordinated unsecured convertible debentures, to the extent that such debentures are not converted into shares before the redemption date.

Immediately before the closing of the offering, the company will issue a notice of redemption for the existing debentures.