Hecla Announces Pricing of US$500,000,000 Senior Notes Offering
Hecla Mining Company (NYSE:HL)
(Hecla or the Company) today announced the pricing of its offering of
US$500,000,000 of 6.875% Senior Notes due 2021 (the Notes) to qualified
institutional buyers in the United States pursuant to Rule 144A under
the Securities Act of 1933, as amended (the Securities Act) and outside
the United States pursuant to Regulation S under the Securities Act. The
size of the offering represents an increase of US$100,000,000 from the
amount originally proposed. The coupon on the Notes will be 6.875% per
year payable in cash semi-annually in arrears. The Notes will mature on
May ?1, 2021. The transaction is expected to close on or about April 12,
2013, subject to the satisfaction of various customary closing
conditions.
The Notes will be guaranteed by certain of the Company′s subsidiaries.
The Company will deposit the proceeds from the Notes into an escrow
account until the satisfaction of certain conditions, including the
consummation of the previously announced pending acquisition of Aurizon
Mines Ltd. (the Escrow Conditions). If the Escrow Conditions are not
satisfied or waived on or prior to September 1, 2013, or such earlier
date as Hecla determines in its sole discretion that the Escrow
Conditions cannot be satisfied, or the related escrow agreement is
terminated, the Notes will be subject to a special mandatory redemption.
Escrowed funds would be released and applied to pay for any such
redemption.
The Notes have not been registered under the Securities Act or any state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws.
This news release shall not constitute an offer to sell or a
solicitation of an offer to purchase the Notes or any other securities,
and shall not constitute an offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful. This press release is being issued pursuant to and in
accordance with Rule 135c under the Securities Act.
ABOUT HECLA
Established in 1891, Hecla Mining Company is the largest and lowest-cost
primary silver producer in the U.S. The company has two operating mines
and exploration properties in four world-class silver mining districts
in the U.S. and Mexico.
Cautionary Note Regarding Forward-Looking Statements
Statements made which are not historical facts, such as anticipated
payments, litigation outcome, production, sales of assets, exploration
results and plans, prospects and opportunities including reserves,
resources, and mineralization, costs, and prices or sales performance
are 'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as 'may?, 'will?,
'should?, 'expects?, 'intends?, 'projects?, 'believes?, 'estimates?,
'targets?, 'anticipates? and similar expressions are used to identify
these forward-looking statements. Forward-looking statements involve a
number of risks and uncertainties that could cause actual results to
differ materially from those projected, anticipated, expected or
implied. These risks and uncertainties include, but are not limited to,
metals price volatility, volatility of metals production and costs,
environmental and litigation risks, operating risks, project development
risks, political and regulatory risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the company's Form
10-K and 10-Q reports for a more detailed discussion of factors that may
impact expected future results. The company undertakes no obligation and
has no intention of updating forward-looking statements other than as
may be required by law.
Hecla Mining Company
Jim Sabala, Sr. VP and CFO
Mike
Westerlund, VP-Investor Relations
or
Investor Relations
Direct
Main: 1-800-HECLA91 (1-800-432-5291)
hmc-info@hecla-mining.com
www.hecla-mining.com
