By Paul A. Harris
St. Louis, Dec. 10 - HudBay Mining & Smelting Inc. priced a downsized $175 million issue of senior secured notes due Jan. 1, 2012 (B3/B) at par on Friday to yield 9 5/8%, according to market sources.
Price talk was the 9½% area.
Credit Suisse First Boston ran the books for the Rule 144A/Regulation S issue.
The notes are guaranteed by a first lien on the company's properties and a second lien on its accounts receivable and inventories.
Proceeds will be used to back the acquisition of Hudson Bay Mining & Smelting assets by Ontzinc Corp. from Anglo American International for about $325 million.
The issue size was decreased from $200 million.
The issuer is a financing subsidiary of Winnipeg, Manitoba-based zinc mining company Hudson Bay Mining & Smelting Inc.
| Issuer: | HudBay Mining & Smelting Inc.
|
| Amount: | $175 million (decreased from $200 million)
|
| Maturity: | Jan. 1, 2012
|
| Security description: | Senior secured notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield: | 9 5/8%
|
| Spread: | 443 basis points
|
| Call features: | Callable on or after Jan. 1, 2009 at 104.813, 102.406, par on and after Jan. 1, 2011
|
| Equity clawback: | Until Jan. 1, 2007 for 35% at 109.625
|
| Trade date: | Dec. 10
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Price talk: | 9½% area
|
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