HudBay Minerals gets tenders for 87% of 9½% notes so far, issues call

By Angela McDaniels

Tacoma, Wash., Dec. 12 – HudBay Minerals Inc. had received tenders for $803.6 million, or 87%, of its $920 million of 9½% senior notes due 2020 as of 5 p.m. ET on Dec. 9, according to a company news release.

As previously reported, a tender offer for the notes began Nov. 28 and will end at midnight ET at the end of Dec. 23. The early tender deadline was 5 p.m. ET on Dec. 9.

The company is also soliciting consents to amend the terms of the notes to reduce the minimum notice period required for redemptions to three days from 30 days. Holders who tendered by the early tender deadline were deemed to have delivered consents.

The company received enough consents to make the amendment and announced that it will redeem all of the outstanding notes at 104.75% of par plus accrued interest up to but excluding the redemption date, Dec. 28.

In the tender offer, the company will pay $1,052.50 per $ 1,000 principal amount. This includes an early tender premium of $30.00 that will only be paid to holders who tendered by the early tender deadline.

The settlement date for notes tendered by the early tender deadline was expected to be Dec. 12.

The company will fund the tender offer and the redemption with the proceeds of its $400 million 7¼% senior notes due 2023 and $600 million 7 5/8% senior notes due 2025, which settled Dec. 12.

HudBay is a Toronto-based mining company focused on copper concentrate, which includes copper, gold and silver, and zinc.

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