Business
NexGen Energy Announces US$110 Million Convertible Debenture Financing and Strategic Purchase of Common Shares
VANCOUVER, BC, Aug. 31, 2023 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has entered
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" VANCOUVER, BC, Aug. 31, 2023 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has entered into binding term sheets with Queen's Road Capital Investment Ltd. (\"QRC\") and Washington H Soul Pattinson and Company Limited (\"WHSP\") for a private placement (the \"Offering\") of US$110 million aggregate principal amount of unsecured convertible debentures (the \"Debentures\"). The Debentures will be convertible at the holder's option into approximately 21.97 million common shares of NexGen (the \"Common Shares\") (at current exchange rates, with the actual number of Common Shares dependent on the exchange rate at the time of conversion). In addition, WHSP has agreed to purchase 8.7 million outstanding common shares of NexGen from QRC (the \"Pre-Arranged Trade\"), enabling QRC to partially fund its purchase of Debentures. Leigh Curyer, Chief Executive Officer, commented: \"Today's US$110M financing from two highly respected investors, our long-standing investor in QRC and, the addition of WHSP in Australia, optimally places NexGen to deliver on its stated objectives in the development of the Rook I Project. It is an incredibly exciting time for NexGen as we recently received confirmation of the completion of the Provincial Environmental Assessment Technical Review and submission of the Final Provincial Environmental Impact Statement to the Saskatchewan Ministry of Environment. Further, permitted pre-construction site works are well advanced with the team and all of its stakeholders focused on the responsible delivery of Rook I for the world's energy transition.\" Terms of the Debentures The Debentures will carry a 9.0% coupon (the \"Interest\") over a 5-year term. The Debentures will be convertible at the holder's option into Common Shares, at a conversion price (the \"Conversion Price\") per Common Share of US$6.76 (C$9.15 per Common Share equivalent incorporating today's exchange rate) representing a 30% premium to the volume-weighted average trading price (the \"VWAP\") per Common Share on the Toronto Stock Exchange (the \"TSX\") for the 5-days ending on the day prior to the date of this announcement. Two-thirds of the Interest (equal to 6% per annum) is payable in cash. One-third of the Interest (equal to 3% per annum) is payable in Common Share...