By Paul A. Harris
Portland, Ore., Dec. 1 – HudBay Minerals Inc. priced $1 billion of senior notes (B3/B) in two tranches on Thursday, according to a market source.
The deal included $600 million of 7 5/8% notes due Jan. 15, 2025, which priced at par to yield 7.627%. The yield printed inside of yield talk in the 7 7/8% area.
HudBay also priced $400 million of 7¼% notes due in Jan. 15, 2023 at par to yield 7.252%. The yield printed in line with yield talk that had the short duration tranche pricing 37.5 basis points inside the 2025 notes.
Barclays was the lead left bookrunner. RBC Capital Markets and BofA Merrill Lynch are the joint bookrunners.
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.
| Issuer: | HudBay Minerals Inc.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | RBC Capital Markets, BofA Merrill Lynch
|
| Co-managers: | CIBC World Markets, ING, Scotia Capital, BMO Securities, NBC, Morgan Stanley & Co. LLC and GMP Securities
|
| Trade date: | Dec. 1
|
| Settlement date: | Dec. 12
|
| Ratings: | Moody’s: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $600 million
|
| Maturity: | Jan. 1, 2025
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7.627%
|
| Call protection: | Callable after three years at 105.719
|
| Equity clawback: | 35% for three years at 107.625
|
| Price talk: | 7 7/8% area
|
|
|
| Six-year notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 1, 2023
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7.252%
|
| Call protection: | Callable after 2.5 years at 103.625
|
| Equity clawback: | 35% for 2.5 years at 107.25
|
| Price talk: | 37.5 bps inside the eight-year notes
|
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