Sigma Lithium prices $125 million convertible bond, upsized 25% and fixes interest rate at 7%
Sigma Lithium Corporation priced a US$125 million, 5‑year convertible bond due November 2031, increasing the size by 25% from the originally announced US$100 million. The bond carries a fixed 7.00% coupon, replacing the prior 11.45% floating rate on its senior secured debt with Synergy Capital. Proceeds will be used to repay the US$125 million senior secured loan, cut short‑term debt by roughly 80%, and provide additional financing for growth and general corporate purposes. The conversion price is US$6.51, a 25% premium to the Nasdaq closing price of US$5.21 on 2 Nov 2026.
Why it matters
The fixed‑rate financing lowers Sigma Lithium’s cash interest expense and extends debt maturity to 2031, improving liquidity. Repaying the secured loan reduces short‑term liabilities by about 80%, which may enhance the company’s credit profile and give investors greater confidence in its balance‑sheet strength.
Key facts
- 1Sigma Lithium priced a US$125 million convertible bond offering due 2031, upsized by 25% from US$100 million. stocktitan.net
- 2The bond carries a fixed coupon of 7.00% per annum, replacing a floating coupon of 11.45% per annum (SOFR + 6.95%). stocktitan.net
- 3Net proceeds will be used to repay the entire US$125 million senior secured debt with Synergy Capital. stocktitan.net
- 4Repayment of the secured debt reduces short‑term debt by approximately 80% on a pro‑forma basis. stocktitan.net
- 5The conversion price is US$6.51, representing a 25% premium to the Nasdaq closing price of US$5.21 on 2 Nov 2026. stocktitan.net
- 6Closing of the offering is expected on or about 16 Nov 2026, subject to regulatory and exchange approvals. stocktitan.net
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.