Silver Wheaton Corp has increased the size of its previously announced public offering to 33,135,000 common shares, at a price of US$16.60 per common share, for aggregate gross proceeds to Silver Wheaton of approximately $550m.
The Offering is with a syndicate of underwriters led by RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets and Scotiabank (the "Underwriters"). In addition, Silver Wheaton has agreed to grant to the Underwriters an option to purchase up to an additional 4,970,250 common shares at a price of US$16.60 per share, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering.
In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to Silver Wheaton will be approximately US$632.5 million.
The net proceeds of the Offering will be used to repay a portion of the debt that was drawn on the Company’s US$2 billion revolving credit facility (the "Revolving Facility") in November 2015 for the US$900 million purchase of the silver stream on the Antamina mine in Peru. As at December 31, 2015, the Company had approximately US$103 million of cash on hand and US$1,466 million outstanding under the Revolving Facility.
The Offering will be made under a prospectus supplement dated March 30, 2016 (the "Supplement") to the Company’s short form base shelf prospectus dated May 4, 2015, to be filed with the securities regulatory authorities in each of the provinces of Canada. The Supplement will also be filed with the U.S. Securities and Exchange Commission as part of a registration statement on Form F-10 in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The Offering is scheduled to close on or about April 7, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange, the New York Stock Exchange and securities regulatory authorities.