HudBay Minerals details launched $1 billion two-part notes offering; pricing Thursday

By Paul A. Harris

Portland, Ore., Dec. 1 – HudBay Minerals Inc. launched its $1 billion two-part offering of senior notes (B3/B), setting tranche sizes and final pricing on Thursday morning, according to a market source.

The deal will include $600 million of notes due in January 2025, launched at 7 5/8%. The notes were talked to yield in the 7 7/8% area.

HudBay also launched $400 million of notes due in January 2023 at 7¼%. The 2023 notes were talked to yield 37.5 basis points inside of the 2025 notes.

Books were scheduled to close at 10:30 a.m. ET on Thursday, except for West Coast roadshow attendees.

The Rule 144A and Regulation S for life deal is set to price later Thursday, which represents an acceleration of the timing; it was originally scheduled to remain in the market into Friday.

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. LLC 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.

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