Silver Wheaton Corp.'s latest financing transaction is receiving mildly positively reviews from the Street.

On Tuesday, Silver Wheaton announced that they will raise up to $136-million by proposing the early exercise of its "First" and Series A warrants. As an incentive, it will be offer holders that exercise during the early exercise period a partial "New" warrant for each warrant converted.

The company also said it has increased its revolving debt facility by $100-million to $400-million.

UBS analyst Brian MacArthur lowered slightly his earnings estimates in light of the transaction, but maintained his "buy" rating and $18 price target, saying the proposed early exercise of warrants and increased debt facility provides Silver Wheaton the financial capability to pursue additional growth opportunities.

BMO Capital Markets analyst Andrea Cheung views the impact of the transaction as "mixed." She agrees with Mr. MacArthur that Silver Wheaton will gain financial flexibilty, and told clients that the transaction negatively affects her earnings and cash flow estimates.

"We have adjusted our forecasts for the early exercise of warrants and anticipated use of proceeds to pay down the credit facility," she said in a note to clients. "The early exercise of the warrants has reduced our 2008 EPS and CFPS estimates to 64¢ and 78¢, respectively. The analyst maintained her "outperform" rating and left her $20 price target unchanged.

Blackmont analyst Richard Gray also lowered his earnings and cash flow estimates by 5¢ and 8¢ based on the assumption all warrants will be exercised early. He kept his "buy" rating and left his $24 price target unchanged,

"The capital raise is long overdue for Silver Wheaton and strengthens the balance sheet, which we expect will allow for more large, aggressive silver stream acquisitions," he wrote.

Shares in Silver Wheaton are down about 5% since the transaction was announced.

David Pett