New Issue: HudBay prices $150 million tap of 9½% senior notes due 2020 at 102 to yield 9.113%

By Paul A. Harris

Portland, Ore., June 11 - HudBay Minerals Inc. priced a $150 million add-on to its 9½% senior notes due Oct. 1, 2020 (B3/B-/) at 102 to yield 9.113% on Tuesday, 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 to fund the development of its Lalor and Reed projects in Manitoba and its Constancia project in Peru.

Issuer:	HudBay Minerals Inc.
Face amount:	$150 million
Proceeds:	$153 million
Maturity:	Oct. 1, 2020
Security description:	Add-on to 9½% senior notes due Oct. 1, 2020
Bookrunner:	Jefferies LLC
Coupon:	9½%
Price:	102
Yield:	9.113%
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:	June 11
Settlement date:	June 20 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	102
Marketing:	Quick to market
Original issue:	$500 million price at par on Sept. 6, 2012
Fungibility:	Upon registration, the add-on notes will be fungible with the existing notes
Total issue size:	$650 million

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