Hecla Mining reschedules 2009 term loan payments to 2010 and 2011

New York, Feb. 3 - Hecla Mining Co. said it has amended its term loan to move all payments due in 2009 to 2010 and 2011.

As part of the agreement, Hecla will raise at least $50 million from an offering of equity or subordinated debt by Feb. 13 and repay its $40 million bridge loan.

"This amendment will provide Hecla with the time to optimize our business and capital structure by moving about $50 million of debt payments from this year to two years from now and $16 million into next year," said Hecla president and chief executive officer Phillips S. Baker, Jr. in a news release.

Hecla currently has a $121 million term loan outstanding in addition to the bridge loan.

As amended, quarterly payments totaling $60 million will be made in 2010 with a final $61.7 million due March 31, 2011.

Interest on the amended loan is not changed.

In return for the amendment, every six months Hecla will issue convertible preferred stock equal to 3.75% of the term debt outstanding. The preferreds will pay a dividend of 12% and be convertible into Hecla stock.

Covenants and other provisions of the term loan were changed.

Hecla is a Coeur d'Alene, Ida., silver and gold miner.

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