CAPITAL MARKETS

Hudbay upsizes senior notes offering to US$600M

Hudbay Minerals yesterday announced a US$500 million senior notes offering and had upsized it to $600 million by close of business.

Staff reporter
 Hudbay Minerals’ drilling in Peru

Hudbay Minerals’ drilling in Peru

It said the offering of $600 million aggregate principal amount of 6.125% senior notes due 2029 was expected to close on September 23.

The new notes would be issued at 100% of their principal amount, to provide the company with gross proceeds of $600 million.

The proceeds would be used to fund the redemption of Hudbay's outstanding $400 million aggregate principal amount of 7.25% senior notes due 2023, pay related costs and for general corporate purposes, the company said.

Its move comes hot on the heels of Iamgold's offering of $450 million of senior notes this week.

Hudbay had cash and equivalents of $391.1 million at June 30.

It recently declared a semi-annual dividend of C1c, despite reporting a net loss of US$51.9 million or 20c per share, due to COVID-19 disruptions in Peru during the June quarter

Its shares closed up 3.34% in Toronto to C$5.88, at the upper end of a one-year range, capitalising it at $1.5 billion (US$1.1 billion).

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