Hecla sets ratio for exchange

New York, Feb. 18 - Hecla Mining Co. said it will exchange 7.94 shares of common stock for each share of its series B cumulative convertible preferred stock properly tendered in its exchange offer.

The Coeur d'Alene, Idaho, silver and gold mining company said it set the ratio by dividing $66.00 by the volume-weighted average price for its common stock on the New York Stock Exchange for the five trading days ending Feb. 18.

Hecla announced on Jan. 16 that its previously announced exchange offer for its series B cumulative convertible preferred stock will run until midnight ET on Feb. 20.

Hecla said it will offer $66.00 in value of its common stock up to 8.25 shares for each share of the series B preferreds.

Hecla said the $66.00 value represents a 12% premium to the preferreds' closing price of $59.00 on Jan. 9 and a 6% premium over the current redemption price for the preferreds.

If all 464,777 preferreds are exchanged, Hecla will issue 3.7 million common shares or 3% of the shares outstanding.

"We encourage preferred shareholders to exchange their shares and participate in any future increases in the value of the common stock. Following the completion of the exchange offer, we will also evaluate exercising our right to redeem any remaining preferred shares at the redemption price of $50 per preferred share plus accrued dividends," said Phillips Baker, Hecla's chief executive officer, in a news release.

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