Hello Montanore,
I guess I did not see where they have the cash to make the Feb payment. Recent financing does not have to go to debt repayment.
From 11/04/2008 release:
< Cash and cash equivalents $ 79,115 >
Here are some emails I sent to IR at HL read from bottom up for correct sequence:
<Tom:
If you look on our website at www.hecla-mining.com in the Investor Relations section under the SEC segment, you can find all these documents. The latest is the prospectus from Dec. 11 and I’ve excerpted a portion here. Below that is a paragraph from the third quarter 10Q, which is stating that at the end of this quarter we have an $18.3 million payment (we made one payment of that size already in September), and that at the end of each quarter, more of the term facility payment is due.
Vicki
From the Prospectus dated December 11:
The total outstanding balance of the debt facility at September 30, 2008 was $198.8 million, comprised of $121.7 million for the term facility and $77.1 million related to the bridge facility. Scheduled debt repayments on the term facility at September 30, 2008 are $18.3 million for the remainder of 2008, $48.3 million in 2009, $43.8 million in 2010 and $11.3 million in 2011. On October 16, 2008, we paid an additional $37.1 million of the bridge loan balance, and the remaining balance of $40 million was extended to February 16, 2009, subject to the requirement that a revised operating plan be submitted to the bank syndicate by November 14, 2008, which revised operating plan was timely submitted. On December 10, 2008, the bank syndicate notified us that the revised operating plan is satisfactory, thereby confirming that the remaining outstanding balance on the bridge loan must be repaid on February 16, 2009. See Note 11 of Notes to the Condensed Consolidated Financial Statements (Unaudited) to our Form 10-Q for the period ended September 30, 2008 for further discussion of our credit facility. On December 10, 2008, we received a written amendment to the credit agreement from the bank waiving (for up to $20,000,000 of net proceeds received by us by December 31, 2008) the requirement that the proceeds of this offering be used for paying down the bridge loan or term loan. Unless payment terms are extended, however, we have significant payments due in December 2008, February 2009, March 2009, June 2009, and thereafter. We may defer some capital investment activities until we secure additional capital, if necessary, to maintain liquidity. We also may pursue additional equity issuances or financing. There can be no assurances that such financing will be available to us. Failure to meet the payment obligations of our credit facilities could cause us to be in default. If there were an event of default under our senior credit facility, the affected creditors could cause all amounts borrowed under these instruments to be due and payable immediately. Additionally, if we fail to repay indebtedness under the senior credit facility when it becomes due, the lenders under the senior credit facility could proceed against the assets which we have pledged to them as security.
From the third quarter 2008 10Q:
The first term facility principal payment of $18.3 was paid on September 30, 2008. At September 30, 2008, the current portion of the $121.7 million outstanding term facility balance was $56.7 million, with the remaining $65 million classified as non-current. Scheduled debt repayments on the term facility at September 30, 2008 are $18.3 million for the remainder of 2008, $48.3 million in 2009, $43.8 million in 2010 and $11.3 million in 2011. We and all of our material U.S. subsidiaries guarantee the amended and restated credit agreement.
From: Tom
Sent: Monday, December 22, 2008 8:38 AM
To: Vicki Veltkamp
Subject: Re: HL
I am sorry to piece meal my emails Vicki, I know with some work I may find my answers but how much is the Dec 31 payment please?
Merry Christmas!
Portland is really getting a white Christmas.
Thank you for all the kind replies in 2008 and may our favorite stock have better days in 2009.
Sincerely,
Tom
-----Original Message-----
From: Vicki Veltkamp <vveltkamp@hecla-mining.com>
To:
Sent: Mon, 22 Dec 2008 8:16 am
Subject: RE: HL
It is due December 31.
Vicki
From:
Sent: Monday, December 22, 2008 7:59 AM
To: Vicki Veltkamp
Subject: Re: HL
Hi Vicki,
We are well into December, has the December payment been made owr what day is it due?
Thank you,
Tom
-----Original Message-----
From: Vicki Veltkamp <vveltkamp@hecla-mining.com>
To: Tom
Sent: Wed, 17 Dec 2008 9:36 am
Subject: RE: HL
Hello Tom:
I cannot make forward looking statements about the debt being paid, nor can I disclose any financial figures that have not been publicly disclosed. I’ve tried to point you to our guidance and information in the 10Q and the most recent prospectus and the news release, which basically says we are looking to extend the payments out and may do additional financing to maintain liquidity. We also need to keep cash on hand for working capital, so not all available cash can go to debt repayment. This is a quote from the latest prospectus:
“Unless payment terms are extended, however, we have significant payments due in December 2008, February 2009, March 2009, June 2009, and thereafter. We may defer some capital investment activities until we secure additional capital, if necessary, to maintain liquidity. We also may pursue additional equity issuances or financing. There can be no assurances that such financing will be available to us.”
That’s the latest public disclosure at this time.
Regards,
Vicki
From:
Sent: Wednesday, December 17, 2008 7:17 AM
To: Vicki Veltkamp
Subject: Re: HL
Hi Vicki,
Does HL have the cash or liquid instruments on hand now or after the most recent financing that is happening now to cover the 58 million due in DEC and FEB?
Thank you,
Tom
Sent: Tue, 16 Dec 2008 7:59 am
Subject: RE: HL
Hello Tom:
The $79 million available on the balance sheet was as of September 30 (which is the required reporting form). That’s why in the verbiage of the release we pointed out that the additional $37 million was paid after that, in the fourth quarter. We need a considerable amount of working capital and at these metals prices have been using cash as well, until our budget cuts are fully implemented. Hence, our emphasis on liquidity, especially since we are facing the payments on the loans in December and February of a total of $58 million.
Regards,
Vicki
From:
Sent: Monday, December 15, 2008 4:59 PM
To: Vicki Veltkamp
Subject: Re: HL
Thank you Vicki. I will have to look at the last quarter report but I thought it said "we" HL had about :
Cash and cash equivalents
$
0A
79,115
$
Short-term investments and securities held for sale
2,428
Accounts and notes receivable
17,344
=0 D
Inventories
17,408
>>>>>>>>>>>>>
About 116 million in cash and investments and acccounts etc recievable? That is why I was surprised with the financing. I assume that amount was after the payments on the loans :
<At the end of the third quarter, Hecla had $81.5 million in cash and short -term investments. Early in the fourth quarter, Hecla repaid $37.1 million of the bridge loan>
<Net proceeds of $163 million in connection with a common stock offering in September 2008>
<Repayment of $200 million of the $240 million bridge loan due October 16, 2008, with an extension of the maturity date for the remainder of the loan >
Leaves about 79 million roughly before the last fiancing? That is why I was surpirsed I guess. Maybe my thoughts and numbers are way off base. Your help is appreciated.
Thank you for all you do.
Best regards,
Tom
