MP Materials (NYSE:MP) priced an offering of $650M principal amount of its 3.00% convertible senior notes due 2030.
Initial purchasers have an option to purchase up to an additional $97.5M principal amount of notes.
The offering was upsized from the previously announced offering of $500M principal amount.
The offering is expected to close on March 7, 2024.
The notes will be convertible into cash, shares or a combination of cash and shares at an initial conversion rate of 45.9939 shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of ~$21.74 per share.
MP Materials estimates that the net proceeds from the offering will be ~$632.8M.
The stock price is up 2.1% on Tuesday during pre-market hours of trading.
