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HudBay launches $150m senior notes offering

11th June 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Miner HudBay Minerals has launched a $150-million senior unsecured notes offering bearing a 9.50% interest rate, and which is due on October 1, 2020.

HudBay on Monday said the notes were in addition to the $500-million, 9.50% senior unsecured notes that it had issued in September 2012.

The company planned to use the net proceeds from the offering for general corporate purposes and the development of its Lalor gold/zinc/copper project and Reed copper project, in Manitoba, and its Constancia copper project, in Peru.

The Bank of Nova Scotia and the Canadian Imperial Bank of Commerce had committed, subject to completion of the offering, to amend or replace the company's existing $300-million revolving credit facility to reduce the amount of the facility to $100-million, to extend the term of the facility to three years from the date of the amendment or replacement is completed, and to remove or revise the earnings before interest, taxes, depreciation and amortisation-based financial covenants contained in the existing facility.

The amendment or replacement of the revolving credit facility was subject to completion of definitive documentation and other customary conditions precedent.

Edited by Creamer Media Reporter

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