Hecla amends loan to push back scheduled principal repayment to Feb. 13

By Jennifer Chiou

New York, Dec. 31 - Hecla Mining Co. announced that it has reached an agreement with its bank syndicate to move the scheduled $18.3 million Dec. 31 principal repayment on its existing term credit facilities to Feb. 13.

The company added that the amended loan agreement changes the interest rate to Libor plus 600 basis points from Libor plus 225 bps to 300 bps.

Hecla said it also granted additional security interests in the assets of the company to secure the facility.

As part of the agreement, Hecla will submit a corporate financial and operating plan to provide the basis for a long-term financial agreement with the bank group to be reached by Feb. 13.

"We are pleased that our bank group continues to work with us as we deal with a difficult time in the equity, credit and metals markets," president and chief executive officer Phillips S. Baker Jr. said in a news release.

"While the rate has increased, with the current Libor, the interest rate is about 7.5%. Finally, moving the date of the next principal payment gives us time to concentrate on cutting our costs, to modify the loan agreement, and to look at other forms of additional financing."

In addition, Hecla's board of directors announced the appointment of Stanley E. Speer as chief restructuring officer for the company. He is a managing director with the financial advisory firm of Alvarez & Marsal.

Hecla is a silver and gold mining company based in Coeur d'Alene, Idaho.

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