Hecla Mining Reduces Debt with Partial Redemption of 7.25% Senior Notes

Hecla Mining Company announced a partial redemption of $212 million from its $475 million 7.25% Senior Notes due 2028. The company raised funds by selling 36 million common shares at $6.10 each via its ATM financing facility. Additionally, Hecla repaid its CAD$50 million Senior Notes issued to Investissement Quebec using free cash flows. The debt reduction will allow for reinvestment in production optimization, exploration programs, and development projects.

Hecla Mining Company (NYSE:HL) has announced a significant strategic move by issuing a notice of partial redemption for $212 million of its outstanding $475 million 7.25% Senior Notes due 2028. The company has raised funds through the sale of approximately 36 million common shares at an average price of $6.10 per share, utilizing its At-The-Market (ATM) financing facility [1].

This strategic capital optimization approach minimizes shareholder dilution compared to traditional equity financing methods, which typically involve large discounts to the share price. The redemption price will be 101.813% of the principal amount of Notes redeemed, and the redemption is expected to occur on or about August 19, 2025 [1].

In addition to this partial redemption, Hecla has also repaid its CAD$50 million Senior Notes issued to Investissement Quebec using free cash flows generated from its operations. This debt reduction will provide the company with enhanced financial flexibility and the opportunity to reinvest in high-return growth opportunities [1].

The interest savings from this debt reduction will strengthen Hecla's balance sheet, enabling strategic reinvestment in three key areas: optimizing production at current operations, expanding high-potential exploration programs, and advancing priority development projects. These targeted investments are designed to accelerate value creation from the company's existing asset base for sustained long-term growth [1].

The company's strong operational free cash flow generation provides a solid financial foundation to service its debt and invest in growth. The utilization of its ATM facility to reduce debt positions the company well for the future, allowing it to capitalize on opportunities within its portfolio while minimizing dilution to shareholders [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250804750522/hecla-mining-company-announces-partial-redemption-notice-of-725-senior-notes