Howmet Aerospace plans early redemption of 5.87% notes due 2022

Chicago, April 1 – Howmet Aerospace, Inc. will redeem its 5.87% notes due 2022 (Cusip: 013817AN1) early, according to an 8-K filing with the Securities and Exchange Commission on Thursday.

The $476.23 million outstanding of notes will be redeemed at the greater of par or a make-whole premium price based on Treasuries plus 15 basis points.

The company expects to pay approximately $500 million for the redemption using cash on hand.

The date for the redemption is May 3.

Cash used for the redemption includes the $700 million cash dividend received from the separated Arconic on April 1, as well as a portion of the $1.7 billion of cash on Howmet Aerospace’s balance sheet as of Dec. 31.

Following the redemption of these notes, the company’s next maturity date for a series is October 2024.

Pittsburgh-based Howmet, previously Arconic Corp., is a global provider of advanced engineered solutions for the aerospace and transportation industries.

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