Hecla Mining to price $500 million eight-year deal on Thursday

By Paul A. Harris

Portland, Ore., June 28 – Hecla Mining Co. plans to price a $500 million offering of eight-year senior notes on Thursday, according to a market source.

An investor conference call is scheduled to get underway at 11 a.m. ET Thursday morning.

BofA Merrill Lynch, ING and Scotia Capital are the joint bookrunners for the Rule 144A with registration rights and Regulation S offer. BMO Securities, CIBC World Markets, Deutsche Bank Securities Inc and RBC Capital Markets LLC are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

The Coeur D’Alene, Idaho-based silver producer plans to use the proceeds, together with cash on hand, to fund a tender offer for its outstanding $506.5 million of 6 7/8% senior notes due 2021 and to redeem the notes that are not tendered.

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