Terms

Series

Mandatory Convertible Preferred Stock

Liquidation Preference

$100.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

Yes

Callable

No

Mandatory Redemption Date

January 1, 2011

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Future Senior Capital Stock, All Subsidiary Liabilities; Pari Passu With: Series B Cumulative Convertible Preferred Stock, Future Parity Capital Stock; Senior To: Series A Junior Participating Preferred Stock, Common Stock, Future Junior Capital Stock

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Shares Offered

1,750,000

Prospectus Summary

Hecla Mining Company, a Delaware-incorporated silver and gold mining company, is offering 1,750,000 shares of Mandatory Convertible Preferred Stock at a liquidation preference of $100 per share with a par value of $0.25. The coupon rate was left blank in this preliminary prospectus but dividends are paid quarterly on January 1, April 1, July 1, and October 1, commencing April 1, 2008, and ending at mandatory conversion on January 1, 2011. Dividends are cumulative — meaning unpaid dividends accumulate and must be satisfied before common holders receive anything — though the board must declare them and payment may be made in cash, common stock, or a combination. The Preferred Stock ranks senior to Hecla's common stock and its Series A junior participating preferred stock, and on parity with its Series B cumulative convertible preferred stock. It is junior to all of Hecla's existing and future indebtedness (approximately $159.7 million in total consolidated liabilities as of Q3 2007). As a holding company issuer, the Preferred Stock is also structurally subordinated to all existing and future obligations of Hecla's operating subsidiaries, meaning subsidiary creditors are paid first before any value flows up to preferred holders. There is no regulatory capital call provision. The exact coupon rate was omitted from this preliminary filing. Dividends are paid quarterly and are cumulative. The issuer may pay dividends in cash, common stock, or a mix at its discretion, subject to a share cap. Upon mandatory conversion on January 1, 2011, any accumulated and unpaid dividends are settled via an adjusted conversion rate (also subject to the share cap), not cash. Tax treatment details are referenced but not included in the excerpt; investors should review the 'Material U.S. Federal Tax Considerations' section. A dividend stopper effectively prevents common stock dividends if preferred dividends are in arrears.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If dividends on the Preferred Stock are not paid, the issuer is also prohibited from paying dividends on common stock and securities junior to the Preferred Stock.

Other Preferreds from Hecla Mining Company

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 60 (Average)