Published on 7/31/2014 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Hudbay upsizes to $170 million, sells tap of 9˝% notes due 2020 at 107
By Paul A. Harris
Portland, Ore., July 31 – Hudbay Minerals, Inc. priced an upsized $170 million add-on to its 9˝% senior notes due Oct. 1, 2020 (B3/existing B-) at 107 to yield 7.502% on Thursday, according to a syndicate source.
The deal was upsized from $150 million.
The reoffer price came at the cheap end of the 107 to 107.5 price talk.
RBC Capital Markets was the bookrunner for the quick-to-market add-on.
Proceeds will be used to repay debt of the Toronto-based mining company’s new approximately 96%-owned subsidiary, Augusta Resource Corp., and for general corporate purposes.
| Issuer: | Hudbay Minerals Inc.
|
| Amount: | $170 million, increased from $150 million
|
| Maturity: | Oct. 1, 2020
|
| Security description: | Add-on to 9˝% senior notes due Oct. 1, 2020
|
| Bookrunner: | RBC Capital Markets LLC
|
| Co-managers: | Canaccord Genuity Inc., CIBC World Markets Corp., Dundee Securities Ltd., GMP Securities LP, Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Coupon: | 9˝%
|
| Price: | 107
|
| Yield to worst: | 7.502%
|
| First call: | Oct. 1, 2016 at 104.75
|
| Trade date: | July 31
|
| Settlement date: | Aug. 6 with accrued interest
|
| Rating: | Moody's: B3
|
| Standard & Poor's: existing B-
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 107 to 107.5
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| Marketing: | Quick to market
|
| Original issue: | $500 million priced at par in September 2012
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| Previous add-on: | $150 million add-on priced at 102 to yield 9.113% in June 2013
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| Subsequent add-on: | $100 million add-on priced at par on Dec. 4, 2013
|
| Fungibility: | Upon registration new add-on notes with be fungible with the outstanding notes
|
| Total issue size: | $920 million
|
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