HudBay sets tender consideration for subsidiary's 9 5/8% notes

By Angela McDaniels

Seattle, Dec. 7 - HudBay Minerals Inc. said that noteholders who tender the 9 5/8% senior secured notes due 2012 of its subsidiary, Hudson Bay Mining and Smelting Co., Ltd., will receive $1,330.30 per $1,000 principal amount of notes tendered.

The tender consideration was determined at 10 a.m. ET on Nov. 7 using the yield to the first redemption date for the notes on Jan. 15, 2009, discounted using the bid-side yield of the 3.25% Treasury due Jan. 15, 2009 and 50 basis points.

Noteholders will also receive accrued interest to the payment date, and the payout includes a $30.00 consent payout for those who tendered before Dec. 6, the consent deadline.

HudBay said that holders of $42.24 million, or 94%, of the notes had submitted tenders and consents as of Dec. 6. Therefore, the company will amend the indenture governing the notes to eliminate most of the restrictive and affirmative covenants and certain events of default.

The tender offer ends at midnight ET on Dec. 20.

Credit Suisse Securities (USA) LLC is the dealer manager and solicitation agent (800 820-1653 or call collect 212 538-0652). Global Bondholder Services Corp. is the information agent and depositary (866 470-4300 or call collect 212 430-3774).

HudBay is a Toronto-based integrated mining and metal producing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.