HudBay Minerals Inc.s Proposed US$1 Billion Senior Unsecured Notes Assigned #B# Issue Ratings (Recovery Rating: #3#)

Stocks and Financial Services Press Releases Tuesday November 29, 2016 09:04
TORONTO--29 Nov--S&P Global Ratings

TORONTO (S&P Global Ratings) Nov. 28, 2016--S&P Global Ratings today said it assigned its 'B' issue-level rating and '3' recovery rating to Toronto-based HudBay Minerals Inc.'s proposed US$1 billion senior unsecured note issuance. The '3' recovery rating indicates our expectation for meaningful (50%-70%; upper half of the range) recovery for lenders in the event of a payment default.

The company intends to use the proceeds from this offering to redeem its US$920 million of senior notes outstanding due 2020. We expect the proposed senior unsecured notes will be composed of two tranches, including notes due 2023 and notes due 2025. The modest increase in gross debt does not materially impact our estimate of the company's credit measures or view of the corporate credit rating.

"Our 'B' long-term corporate credit rating and stable outlook on HudBay primarily reflect our view of the company's limited operating diversity, large debt load, and the high sensitivity of its credit metrics to base metals price volatility. The rating also incorporates Hudbay's favorable cash cost position, led by its flagship Constancia copper mine in Peru, and commodity production diversity provided by the company's Manitoba operations. We expect the company to generate an adjusted debt-to-EBITDA ratio in the mid-4x area and near breakeven free cash flows through 2017. In addition, we estimate the company's liquidity position to remain relatively stable over this period. Our estimates in 2017 are underpinned by an average copper price of US$2.20 per pound and average zinc price of US$1.00 per pound, with modestly lower copper output relative to 2016 levels.

For our complete corporate credit rating rationale on HudBay, please see our research report published Oct. 28, 2016, on RatingsDirect.

Latest Press Release

USD120,000 at stake in CIMBs 3D Conquest to unearth ASEANs top #digital talents Competition sets path for nurturing crucial skills in data science, FinTech and coding among tertiary students

CIMB Group Holdings Berhad ("the Group" or "CIMB") has launched the CIMB 3D Conquest, a competition that aims to identify and attract ASEAN's top creative, young digital talent with an agile and entrepreneurial mindset. Open to all tertiary students, the...

Allianz to become Worldwide Olympic Insurance Partner

The International Olympic Committee (IOC) and Allianz today announced that the insurer will join the "Worldwide Olympic Partner" (TOP) Programme in 2021. Through this sponsorship agreement, Allianz will work with the IOC to provide innovative and...

BYFX Global Co., Limited Announces Business Launch

BYFX Global Co., Limited (BYFX Global) today announced the launch of its retail and institutional business -- offering clients around the globe top-tier liquidity and online OTC trading for Spot FX and Spot Bullion[1]. Striving towards financial...

2018 Robot World to Suggest Direction for the Fourth Industrial Revolution

Showcasing the latest robot technologies from around the world, the 2018 Robot World will be held at KINTEX, Korea from October 10-13, 2018. The Robot World (eng.robotworld.or.kr/wp), celebrating its 13th anniversary this year, consists of four main...

ชวนผู้ประกอบการเรียนรู้เส้นทางความสำเร็จของสตาร์ทอัพแอปพลิเคชัน เคลมดิ อังคาร 25 ก.ย. นี้

ตลาดหลักทรัพย์ฯ ขอเชิญผู้ประกอบการ Social Enterprise (SE) SMEs และ Startup ร่วมอบรมครั้งพิเศษในโครงการ SET Social Impact Gym หัวข้อ "Fintech vs Social Startup... Lesson Learned..." พบกับสตาร์ทอัพเจ้าของแอปพลิเคชัน "เคลมดิ" (Claim Di)...

Related Topics