Hecla Mining prices $175 million in mandatory convertible preferreds at 6.5%, up 22%

New York, Dec. 12 - Hecla Mining Co. priced $175 million of mandatory convertible preferred stock due Jan. 1, 2011 with a 6.5% dividend and a 22% initial conversion premium.

The deal came at the rich end of talk for a 6% to 6.5% dividend and an 18% to 22% initial conversion premium.

The convertibles priced Wednesday after market close.

JPMorgan and Merrill Lynch are joint bookrunners on the Securities and Exchange Commission-registered transaction.

There is a $26.25 million over-allotment option.

At maturity, the shares will convert into between 8.4502 and 10.3093 of Hecla stock. Holders can convert ahead of maturity at the 8.4502 ratio.

Hecla can force conversion into cash or stock up to July 1, 2008 as long as it has not acquired any assets or a business with a purchase price of $100 million or more.

The mandatories have dividend and takeover protection.

Hecla Mining will issue 1.75 million mandatories at $100 per preferred share.

Hecla Mining is a Coeur d'Alene, Idaho-based precious metals miner. The company plans to use the proceeds for general corporate purposes, including acquisitions of other businesses, securities, assets, properties or mining projects, claims or interests.

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