COEUR D’ALENE, Idaho--(BUSINESS WIRE)--
Hecla Mining Company (NYSE:HL)
today announced its intention to offer (the “Offering”), subject to
market and other conditions, $500 million of Senior Notes due 2025 (the
“Notes”).
The Notes will be fully and unconditionally guaranteed by certain of the
Company’s subsidiaries. The Company intends to use the net proceeds from
the Offering, together with cash on hand, to pay the purchase price and
tender premium for up to all $506.5 million aggregate principal amount
outstanding of its 6.875% Senior Notes due 2021 (the “2021 Notes”) that
are validly tendered (and not validly withdrawn) by holders and accepted
by the Company in connection with the cash tender offer that it
commenced on June 28, 2017 (the “Concurrent Tender Offer”) and to pay
the redemption price to redeem any of the 2021 Notes that are not so
tendered in the Concurrent Tender Offer.
The Notes will only be offered and sold 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 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. Upon the
closing of the offering of the Notes, the Company, the guarantors of the
Notes and the initial purchaser will enter into a registration rights
agreement pursuant to which the Company and the guarantors will agree to
file a registration statement with respect to an offer to exchange the
Notes for a new issue of Notes of the same series registered under the
Securities Act.
The Concurrent Tender Offer is being made on the terms and subject to
the conditions set forth in an Offer to Purchase dated June 28, 2017,
which is being sent to holders of the 2021 Notes. This news release
shall not constitute an offer to sell or a solicitation of an offer to
purchase the 2021 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. In
addition, this news release does not constitute a notice of redemption
of the 2021 Notes under the optional redemption provisions of the
indenture governing the 2021 Notes.
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 news release is being issued pursuant to and in
accordance with Rule 135c under the Securities Act.This news
release shall not constitute a notice of redemption for purposes of the
2021 Notes.
ABOUT HECLA
Founded in 1891,Hecla Mining Company (NYSE:HL)
is a leading low-cost U.S. silver producer with operating mines in
Alaska, Idaho and Mexico, and is a growing gold producer with an
operating mine in Quebec, Canada. The Company also has exploration and
pre-development properties in seven world-class silver and gold mining
districts in the U.S., Canada, and Mexico, and an exploration office and
investments in early-stage silver exploration projects in Canada.
Cautionary Statements Regarding Forward-Looking Statements
Statements made or information provided in this news release that are
not historical facts are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian securities
laws. Such forward-looking statements or forward-looking information
include without limitation, statements regarding the Company’s
intentions, expectations or beliefs regarding (i) the Company’s
intention to offer the Notes, subject to market and other conditions and
(ii) the Company’s intention to use the proceeds of the Offering,
together with cash on hand, to repurchase the 2021 Notes that are
validly tendered (and not validly withdrawn) by holders and accepted by
the Company, to pay the redemption price to redeem any of the 2021 Notes
that are not so tendered, and to pay related fees and expenses in
connection with the offering. 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,
adverse conditions in the United States or global capital markets, other
adverse conditions in the United States or global economy, metals price
volatility, volatility of metals production and costs, litigation,
regulatory and environmental risks, operating risks, project development
risks, political risks, labor issues, ability to raise financing and
exploration risks and results; including that mineral resources are not
mineral reserves, they do not have demonstrated economic viability and
there is no certainty that they can be upgraded to mineral reserves
through continued exploration, and with respect to Hecla’s non-operating
and exploration properties, that few properties that are explored are
ultimately developed into producing mines. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170628006209/en/
Hecla Mining Company
Mike Westerlund, 800-HECLA91 (800-432-5291)
Vice
President, Investor Relations
hmc-info@hecla-mining.com
www.hecla-mining.com
Source: Hecla Mining Company