Hecla Mining Co (HL)

[loantech]

My latest communication with HL IR Vicki who does an excellent job:

From: @aol.com [mailto:@aol.com]
Sent: Tuesday, January 06, 2009 8:44 AM
To: Vicki Veltkamp
Subject: Re: HL



Hi Vicki,
Did the latest financing close?
Thank you,
tom

Hello Tom:

If you are talking about the equity financing done on December 11, yes that closed a few days after that. But if you are asking what happened with the principal payment that was due at the end of December, please see the excerpt from this news release below.

Regards,

Vicki

Hecla Amends Loan Agreement

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Dec. 31, 2008--Hecla Mining Company (NYSE:HL) today announced it has reached agreement with its bank syndicate to move the scheduled December 31, 2008, principal repayment in the amount of $18.3 million on its existing term credit facilities to February 13, 2009. The amended loan agreement changes the current interest rate on the term loan of between 2.25% and 3% over LIBOR to an interest rate of 6% over LIBOR. Hecla also granted additional security interests in the assets of the company to secure the facility. As part of the agreement, Hecla will submit a corporate financial and operating plan to provide the basis for a long-term financial agreement with the bank group to be reached by February 13, 2009. Details on the amended loan agreement can be seen in the Form 8K to be filed with the Securities and Exchange Commission.

Hecla Mining Company President and Chief Executive Officer Phillips S. Baker, Jr., said, "We are pleased that our bank group continues to work with us as we deal with a difficult time in the equity, credit and metals markets. While the rate has increased, with the current LIBOR, the interest rate is about 7.5%. Finally, moving the date of the next principal payment gives us time to concentrate on cutting our costs, to modify the loan agreement, and to look at other forms of additional financing." The credit agreement was put into place earlier this year as a result of financing the purchase of the Greens Creek joint venture, which is the world's fifth largest silver-producing mine and one of the world's lowest cost silver mines. Of the total $750 million purchase price of Greens Creek, Hecla has just $162 million in debt outstanding between its bridge and term loan credit facilities.

In addition, Hecla's Board of Directors announced the appointment of Stanley E. Speer as Chief Restructuring Officer (CRO) for the company, to provide additional strategic financial advice and liaise with the bank group. Speer is a Managing Director with the financial advisory firm of Alvarez & Marsal.

Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold in the United States and Mexico. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols "HL," "HL-PrB" and "HL-PrC."