New Issue: Hecla Mining sells upsized $500 million eight-year notes at par to yield 6 7/8%

By Paul A. Harris

Portland, Ore., April 9 - Hecla Mining Co. priced an upsized $500 million issue of eight-year senior notes (B2/B/) at par to yield 6 7/8% on Tuesday, according to a syndicate source.

The issue was upsized from $400 million.

The yield printed at the tight end of the 6 7/8% to 7 1/8% yield talk.

BofA Merrill Lynch and Scotia Capital (USA) Inc. were the joint bookrunners.

The Coeur d'Alene, Idaho-based silver producer plans to use the proceeds to pay the cash portion of the Aurizon Mines Ltd. acquisition and for general corporate purposes.

The $100 million of additional proceeds, resulting from the upsizing of the issue, will also be used for general corporate purposes.

Issuer:	Hecla Mining Co.
Amount:	$500 million, increased from $400 million
Maturity:	May 1, 2021
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, Scotia Capital (USA) Inc.
Co-manager:	ING Financial Markets LLC
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	554 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2016, then callable at 105.156, 103.438, 101.719, par on and after May 1, 2019
Equity clawback:	35% at 106.875 until May 1, 2016
Trade date:	April 9
Settlement date:	April 2
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 7/8% to 7 1/8%
Marketing:	Roadshow

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