Published on 12/4/2013 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: HudBay prices $100 million tap of its 9½% notes due 2020 at par
By Paul A. Harris
Portland, Ore., Dec. 4 - HudBay Minerals Inc. priced a $100 million add-on to its 9½% senior notes due Oct. 1, 2020 (B3/B-/) at par to yield 9½% on Wednesday, according to an informed source.
The reoffer price came on top of price talk.
Jefferies LLC was the bookrunner.
The Toronto-based integrated mining company plans to use the proceeds for general corporate purposes and for the development of its Lalor, Reed and Constancia projects.
| Issuer: | HudBay Minerals Inc.
|
| Amount: | $100 million
|
| Maturity: | Oct. 1, 2020
|
| Security description: | Add-on to 9½% senior notes due Oct. 1, 2020
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Call features: | Make-whole at Treasuries plus 50 bps until Oct. 1, 2016, then callable at 104.75, 102.375, par on and after Oct. 1, 2018
|
| Equity clawback: | 35% at 109.5 until Oct. 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 9 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | Par
|
| Marketing: | Quick to market
|
| Original issue: | $500 million priced at par in September 2012
|
| Previous add-on: | $150 million priced at 102 to yield 9.113% on June 11, 2013
|
| Fungibility: | Upon registration the new add-on notes will be fungible with the existing notes
|
| Total issue size: | $750 million |
|
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