Hudbay Announces Pricing for Upsized US$600 Million Aggregate Principal Amount of Senior Notes and Redemption of its Outstand...
September 09 2020 - 4:30PM
Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX,
NYSE:HBM) today announced that it has priced an upsized
offering of US$600 million aggregate principal amount of 6.125%
senior notes due 2029 (the “New Notes”). The size of the
offering was increased from the previously announced US$500 million
aggregate principal amount. The New Notes will be issued at
100% of their principal amount, providing the company with gross
proceeds of US$600 million. The New Notes offering is expected to
close on September 23, 2020, subject to customary closing
conditions. Hudbay plans to use the net proceeds from the offering
to fund the company’s redemption of all of its outstanding US$400
million aggregate principal amount of 7.250% senior notes due 2023
(the “2023 Notes”), pay any related premium, costs and expenses and
for general corporate purposes.
Hudbay also announced today the redemption of
all of the 2023 Notes on the terms and subject to the conditions
set forth in the redemption notice dated September 9, 2020. The
redemption is conditioned upon the successful closing of the
offering of the New Notes, contemporaneous with or prior to the
redemption date.
The New Notes will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), or
the securities laws of any other jurisdiction. The New Notes will
not be qualified by a prospectus in Canada. Unless they are
registered or qualified by a prospectus, the New Notes may be
offered only in transactions that are exempt from registration
under the Securities Act, prospectus qualification under Canadian
securities laws or the securities laws of any other jurisdiction.
In the United States, the New Notes will be offered, and sold, only
to persons reasonably believed to be “qualified institutional
buyers” (as defined in Rule 144A under the Securities Act) and
outside the United States to non-U.S. persons in compliance with
Regulation S under the Securities Act.
This press release is neither an offer to sell
nor the solicitation of an offer to buy the New Notes, the 2023
Notes or any other securities and shall not constitute an offer to
sell or solicitation of an offer to buy, or a sale of, the New
Notes, the 2023 Notes or any other securities in any jurisdiction
in which such offer, solicitation or sale is unlawful. This press
release does not constitute a notice of redemption with respect to
the 2023 Notes.
There can be no assurance that the New Notes
offering will be completed as contemplated or at all and that the
proceeds of the offering will be used for the stated intended
purpose. In the event the New Notes offering is not closed as
contemplated, the 2023 Notes will not be redeemed.
Forward-Looking
Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. All information contained in this
news release, other than statements of current and historical fact,
is forward-looking information. Often, but not always,
forward-looking information can be identified by the use of words
such as “plans”, “expects”, “budget”, “guidance”, “scheduled”,
“estimates”, “forecasts”, “strategy”, “target”, “intends”,
“objective”, “goal”, “understands”, “anticipates” and “believes”
(and variations of these or similar words) and statements that
certain actions, events or results “may”, “could”, “would”,
“should”, “might” “occur” or “be achieved” or “will be taken” (and
variations of these or similar expressions). All of the
forward-looking information in this news release is qualified by
this cautionary note. Forward-looking information is not, and
cannot be, a guarantee of future results or events. Forward-looking
information is based on, among other things, opinions, assumptions,
estimates and analyses that, while considered reasonable by the
company at the date the forward-looking information is provided,
inherently are subject to significant risks, uncertainties,
contingencies and other factors that may cause actual results and
events to be materially different from those expressed or implied
by the forward-looking information. The risks, uncertainties,
contingencies and other factors that may cause actual results to
differ materially from those expressed or implied by the
forward-looking information are described under the heading “Risk
Factors” in our most recent annual information form for the year
ended December 31, 2019 and our management’s discussion and
analysis for the three and six months ended June 30, 2020.
Should one or more risk, uncertainty, contingency or other factor
materialize or should any factor or assumption prove incorrect,
actual results could vary materially from those expressed or
implied in the forward-looking information. Accordingly, you should
not place undue reliance on forward-looking information. Hudbay
does not assume any obligation to update or revise any
forward-looking information after the date of this news release or
to explain any material difference between subsequent actual events
and any forward-looking information, except as required by
applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. The company is governed by
the Canada Business Corporations Act and its shares are
listed under the symbol "HBM" on the Toronto Stock Exchange, New
York Stock Exchange and Bolsa de Valores de Lima.
For further information, please contact:
Candace BrûléDirector, Investor Relations(416)
814-4387candace.brule@hudbay.com
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