| Long-term debt [text block] |
Long-term debt is comprised of the following:
| |
|
|
Dec. 31, 2017
|
|
|
Dec. 31, 2016 |
|
| |
Senior unsecured notes (a) |
$
|
987,903
|
|
$ |
986,574
|
|
| |
Equipment finance facility (b) |
|
-
|
|
|
50,267
|
|
| |
Senior secured revolving credit facilities (c) |
|
-
|
|
|
202,075
|
|
| |
Less: Unamortized transaction costs - revolving credit facilities (d) |
|
(8,328
|
)
|
|
(6,752
|
) |
| |
|
|
979,575
|
|
|
1,232,164
|
|
| |
Less: current portion |
|
-
|
|
|
(16,490
|
) |
| |
|
|
|
|
|
|
|
| |
|
$
|
979,575
|
|
$ |
1,215,674
|
|
| |
(a)
|
Senior unsecured notes
|
| |
Balance, January 1, 2016 |
$ |
917,329
|
|
| |
Addition to Principal, net of transaction costs |
|
987,671
|
|
| |
Payments made |
|
(920,000
|
) |
| |
Change in fair value of embedded derivative (prepayment option) |
|
(1,146
|
) |
| |
Write-down of unamortized transaction costs |
|
2,216
|
|
| |
Accretion of transaction costs and premiums |
|
504
|
|
| |
Balance, December 31, 2016 |
$ |
986,574
|
|
| |
Transaction costs
|
|
(133
|
)
|
| |
Change in fair value of embedded derivative (prepayment option)
|
|
450
|
|
| |
Accretion of transaction costs and premiums
|
|
1,012
|
|
| |
|
|
|
|
| |
Balance, December 31, 2017
|
$
|
987,903
|
|
On December 12, 2016 and December 28, 2016, the Group redeemed for cash all of its outstanding $920,000
aggregate principal amount of
9.50% senior unsecured notes due 2020. The unamortized transaction costs of $2,216
were expensed upon extinguishment of the Group’s
9.50% senior unsecured notes.
On December 12, 2016, the Group completed an offering of $1,000,000
aggregate principal amount of senior notes in two series: (i) a series of
7.25% senior notes due 2023 in an aggregate principal amount of $400,000
and (ii) a series of
7.625% senior notes due 2025 in an aggregate principal amount of $600,000. The senior notes are guaranteed on a senior unsecured basis by substantially all of the Company’s subsidiaries, other than HudBay (BVI) Inc. and certain excluded subsidiaries, which include the Company’s subsidiaries that own an interest in the Rosemont project and any newly formed or acquired subsidiaries that primarily hold or may develop non-producing mineral assets that are in the pre-construction phase of development.
| |
(b)
|
Equipment finance facility
|
| |
Balance, January 1, 2016 |
$ |
66,521
|
|
| |
Transaction costs |
|
(1,013
|
) |
| |
Payments made |
|
(16,490
|
) |
| |
Accretion of transaction costs |
|
1,249
|
|
| |
Balance, December 31, 2016 |
$ |
50,267
|
|
| |
Transaction costs
|
|
(326
|
)
|
| |
Payments made
|
|
(54,364
|
)
|
| |
Write-down of unamortized transaction costs
|
|
3,552
|
|
| |
Accretion of transaction costs
|
|
871
|
|
| |
|
|
|
|
| |
Balance, December 31, 2017
|
$
|
-
|
|
The equipment finance facility is reflected in the consolidated balance sheets as follows:
| |
|
|
Dec. 31,
|
|
|
Dec. 31, |
|
| |
|
|
2017
|
|
|
2016 |
|
| |
Current |
$
|
-
|
|
$ |
16,490
|
|
| |
Non-current |
|
-
|
|
|
33,777
|
|
| |
|
|
|
|
|
|
|
| |
|
$
|
-
|
|
$ |
50,267
|
|
The equipment finance facility was repaid and extinguished during the third quarter of 2017 resulting in the write-down of unamortized transaction costs.
| |
(c)
|
Senior secured revolving credit facilities
|
| |
Balance, January 1, 2016 |
$ |
297,075
|
|
| |
Addition to Principal, net of transaction costs |
|
65,000
|
|
| |
Payments made |
|
(160,000
|
) |
| |
Balance, December 31, 2016 |
$ |
202,075
|
|
| |
Addition to Principal
|
|
25,000
|
|
| |
Payments made
|
|
(227,075
|
)
|
| |
|
|
|
|
| |
Balance, December 31, 2017
|
$
|
-
|
|
On July 14, 2017, the Group entered into amendments to its two senior credit facilities to secure both facilities with substantially all of the Group’s assets other than assets related to the Rosemont project, amend the financial covenants, extend the maturity dates from March 31, 2019 to July 14, 2021 and reduce the interest rate from LIBOR plus
4.50% to LIBOR plus
3.00%, based on financial results for the twelve months ended June 30, 2017. The two facilities have substantially similar terms and conditions.
| |
(d)
|
Unamortized transaction costs - revolving credit facilities
|
| |
Balance, January 1, 2016 |
$ |
6,045
|
|
| |
Accretion of transaction costs |
|
(4,272
|
) |
| |
New transaction costs |
|
4,979
|
|
| |
Balance, December 31, 2016 |
$ |
6,752
|
|
| |
Accretion of transaction costs
|
|
(3,291
|
)
|
| |
New transaction costs
|
|
4,867
|
|
| |
|
|
|
|
| |
Balance, December 31, 2017
|
$
|
8,328
|
|
|