HudBay Minerals talks $400 million eight-year notes at 9¾% area yield

By Paul A. Harris

Portland, Ore., May 17 - Toronto-based HudBay Minerals Inc. talked its $400 million offering of eight-year senior notes (B3/B) with a yield in the 9¾% area on Thursday, according to a syndicate source.

The books close at 2 p.m. ET on Friday, except for accounts meeting with the company on Friday. The deal is set to price thereafter.

Bank of America Merrill Lynch is the bookrunner.

CIBC World Markets, Scotia Capital, TD Securities, Credit Suisse Securities (USA) LLC, RBC Capital Markets, NBCF, SG CIB, Cormark, GMP, Macquarie and Stifel, Nicholas are the co-managers.

The Rule 144A and Regulation S for life notes come with four years of call protection and feature a 101% poison put.

The integrated mining company plans to use the proceeds for general corporate purposes, as well as for development projects in Manitoba and, if approved, the development of the Constancia project.

HudBay Minerals produces copper concentrate containing copper, gold and silver. The company also produces zinc metal.

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