By Paul A. Harris
Portland, Ore., Sept. 6 - Nearly four months after postponing a similarly structured $400 million deal due to market conditions, Toronto-based HudBay Minerals Inc. returned on Thursday to price an upsized $500 million issue of eight-year notes (B3/B/) at par to yield 9½%, according to an informed source.
Thursday's deal was upsized from $400 million.
The yield printed at the wide end of the 9 3/8% to 9½% yield talk.
Bank of America Merrill Lynch ran the books for the quick-to-market issue.
The integrated mining company plans to use the proceeds for general corporate purposes and to fund the development of its Lalor and Reed projects in Manitoba and its Constancia project in Peru.
| Issuer: | HudBay Minerals Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Oct. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 821 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2016, then callable at a premium
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 9 3/8% to 9½%
|
| Marketing: | Quick to market
|
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