Equinox Gold Corp. (EQX) has announced plans to redeem $172.5 million in convertible notes due October 15, 2028. The redemption price is set at $1,000.66 per $1,000 principal amount, including accrued and unpaid interest. The notes, which carry a 4.75% interest rate, were issued between Equinox Gold and Computershare Trust Company, N.A., on September 21, 2023.
The conversion rate for the notes, as of September 18, was 158.7302 common shares per $1,000 principal amount. However, an adjusted rate of 165.0732 common shares per $1,000 principal amount has been set for converting holders, reflecting a conversion price of approximately $6.0579. This conversion price includes applicable dividend adjustments and make-whole increases. If all notes are converted, up to 28,475,124 common shares will be issued, representing about 2.44% of the currently outstanding common shares.
The redemption process will be completed via the facilities of the Depository Trust Company for notes held in book-entry form. The conversion deadline is 5:00 p.m. New York City time on October 19, with the redemption date set for October 20 for any notes not converted by the deadline.
Equinox Gold is a Canadian mining company with gold operations in Canada and across the Americas.
