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NexGen Energy Closes US$110 Million Strategic Convertible Debenture Financing
VANCOUVER, BC, Sept. 22, 2023 /CNW/ - NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has closed
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" VANCOUVER, BC, Sept. 22, 2023 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that it has closed its previously announced non-brokered private placement (the \"Offering\") of US$110 million aggregate principal amount of unsecured convertible debentures (the \"Debentures\") with Queen's Road Capital Investment Ltd. (\"QRC\") and Washington H Soul Pattinson and Company Limited (\"WHSP\"). NexGen currently has cash reserves of C$330 million. Terms of the Debentures The Debentures carry a 9.0% coupon (the \"Interest\"), have a maturity date of September 22, 2028, and are convertible at the holder's option into common shares of NexGen (the \"Common Shares\") at a conversion price (the \"Conversion Price\") of US$6.76 per Common Share, representing a 30% premium to the volume-weighted average trading price of the Common Shares (the \"VWAP\") on the Toronto Stock Exchange for the five trading days prior to the entering into of the previously announced binding term sheets with respect to the Debentures. The Interest is payable semi-annually in arrears beginning on December 10, 2023. 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 shares issuable at a price equal to the 20-day VWAP on the New York Stock Exchange (the \"NYSE\") ending on the third trading day prior to the date such Interest is due. The Company is entitled, on or after the third anniversary of the issuance of the Debentures, at any time that the 20-day VWAP on the NYSE exceeds 130% of the Conversion Price, to redeem the Debentures at par plus accrued and unpaid Interest. The Company issued an aggregate of 634,615 Common Shares to QRC and WHSP as an establishment fee in connection with the Offering, representing 3% of the aggregate principal amount of the Debentures. Strategic Alignment Provisions In connection with the Offering, the Company entered into an amended and restated investor rights agreement with QRC, and an investor rights agreement with WHSP, each containing voting alignment, standstill, and transfer restriction covenants that will apply (subject to certain exceptions) unless and until there is a change of control of the Company. The Company has been advised by QRC and WHSP that, following compl...