Lithium Americas completed an initial closing under a securities purchase agreement with YA II PN, issuing $150 million of subordinated convertible debentures.
The agreement allows up to $25 million of additional debentures through delayed closings, subject to the company’s put right.
The debentures carry a five-year maturity and 5% annual interest, with step-ups to 7.5% or 15% if specified triggers occur.
The conversion price is set at the lower of $4.56 or 95% of the five-day low VWAP, subject to a $1.63 floor.
Cash principal repayment is capped at $35 million while Orion convertible notes remain outstanding, with funding limited to specified sources.
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