New Issue: Hudbay Minerals prices upsized $600 million 8.5-year notes at par to yield 6 1/8%

By Paul A. Harris

Portland, Ore., Sept. 9 – Hudbay Minerals Inc. priced an upsized $600 million issue of 8.5-year senior notes (B3/B/B+) at par to yield 6 1/8% in a Wednesday drive-by, according to market sources.

The issue size was increased from $500 million.

The yield printed at the tight end of the 6 1/8% to 6 3/8% yield talk. Initial guidance was in the mid-6% area.

Joint bookrunner Barclays will bill and deliver.

The Toronto-based mining company plans to use the proceeds to refinance its existing senior notes due 2023, with any remaining proceeds to be used for general corporate purposes including additional debt repayment.

Issuer:	Hudbay Minerals Inc.
Amount:	$600 million, increased from $500 million
Maturity:	April 1, 2029
Securities:	Senior notes
Bookrunners:	Barclays (bill and deliver), J.P. Morgan Securities LLC, CIBC World Markets Corp., ING Financial Markets LLC, Scotia Capital (USA) Inc., BMO Capital Markets Corp., National Bank of Canada Financial Inc. RBC Capital Markets, LLC, TD Securities (USA) LLC
Co-managers:	BofA Securities Inc., Citigroup Global Markets Inc., Jefferies LLC, Canaccord Genuity Corp. Stifel Nicolaus & Co. Inc., Haywood Securities Inc.
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	551 bps
First call:	April 1, 2024 at 103.06
Trade date:	Sept. 9
Settlement date:	Sept. 23
Ratings:	Moody's: B3
	S&P: B
	Fitch: B+
Distribution:	Rule 144A for life
Price talk:	6 1/8% to 6 3/8%
Marketing:	Drive-by

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