Hudbay Minerals to sell $150 million more 9˝% notes due 2020 Thursday

By Paul A. Harris

Portland, Ore., July 31 – Hudbay Minerals, Inc. plans to price a $150 million add-on to its 9˝% senior notes due Oct. 1, 2020 (existing ratings B3/B-) on Thursday via bookrunner RBC Capital Markets, according to an informed source.

The deal is scheduled to be marketed on an investor conference call at noon ET. That call trails the Toronto-based mining company’s mid-morning earnings call for the second quarter of 2014.

The Rule 144A and Regulation S with registration rights notes become callable on Oct. 1, 2016 at 104.75 and feature a 101% poison put.

Proceeds will be used to repay debt of its new approximately 96%-owned subsidiary, Augusta Resource Corp., and for general corporate purposes.

The original $500 million issue priced at par in September 2012. A previous $150 million add-on priced at 102 to yield 9.113% in June 2013. A subsequent $100 million add-on priced at par on Dec. 4, 2013.

Upon registration the new add-on notes with be fungible with the outstanding notes.

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