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Hecla repays $200 million of bridge, extends maturity, revises pricing
By Sara Rosenberg
New York, Oct. 16 - Hecla Mining Co. repaid $200 million of its $240 million bridge loan and amended the loan to extend the maturity date for the remaining $40 million to Feb. 16, 2009, according to an 8-K filed with the Securities and Exchange Commission.
In addition, the amendment to the credit facility, which was completed on Thursday, revised pricing on the bridge loan as well as on the company's term loan.
Under the amendment, bridge loan pricing is now Libor plus 600 basis points, up from Libor plus 300 bps, and term loan pricing was increased by 100 bps to a range of Libor plus 225 bps to 300 bps depending on leverage.
In September, the company repaid $18.3 million of its term loan debt reducing the outstanding balance to $121.7 million.
The amendment also requires the company to pay any dividends on its 6.5% mandatory convertible preferred stock in common stock until the bridge facility is repaid in full.
The Bank of Nova Scotia is the administrative agent on the deal.
"While we had sufficient cash on our balance sheet at quarter end to repay the entire bridge loan, in these times of tight credit, we elected to extend the maturity of the bridge loan to maintain additional liquidity. We will continue to look at ways to enhance our liquidity with solid mine plans, temporary budget reductions particularly in capital and exploration spending, and potential amendments to the payback schedule of our term loan facility," said Phillips S. Baker, Jr., president and chief executive officer, in a news release.
Hecla is a Coeur d'Alene, Idaho-based miner, processor and explorer of silver and gold.
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