HudBay Minerals sets roadshow for $1 billion two-par notes offering, to fund tender for 9½% notes

By Paul A. Harris

Portland, Ore., Nov. 28 – HudBay Minerals Inc. plans to start a roadshow on Tuesday in Toronto and Boston for a $1 billion two-part offering of senior notes (B), according to a market source.

The roadshow moves to New York on Wednesday and to the West Coast of the United States on Thursday.

An investor call is set to get underway at 12:30 p.m. ET on Wednesday.

The Rule 144A and Regulation S for life deal is expected to price on Friday.

The offer includes tranches of six-year notes and eight-year notes, with tranche sizes remaining to be determined.

The short duration notes will mature in January 2023. They will become callable at par plus 50% of the coupon in 2.5 years and feature a 2.5-year 35% equity clawback at par plus the coupon.

The long duration notes will mature in January 2025. They will become callable at par plus 75% of the coupon after three years and feature a three-year 35% equity clawback at par plus the coupon.

Barclays is the lead left bookrunner. RBC Capital Markets and BofA Merrill Lynch are the joint bookrunners. CIBC World Markets, ING, Scotia Capital, BMO Securities, NBC, Morgan Stanley & Co. and GMP Securities are the co-managers.

All of the notes feature 101% poison puts.

The Toronto-based mining company plans to use the proceeds to fund a tender offer for its 9½% senior notes due 2020 and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.