Novelis lifts tender cap on $1.1 billion 8 3/8% senior notes due 2017

By Susanna Moon

Chicago, Aug. 17 – Novelis Inc. is now tendering for any and all of its $1.1 billion of outstanding 8 3/8% senior notes due 2017.

The company scrapped the tender cap on its offer after pricing $1.15 billion of eight-year senior notes at par to yield 6¼% last Friday, upsized from $525 million, as previously reported.

The company began tendering for up to $500 million of the 8 3/8% notes on Aug. 15.

All other terms of the tender offer remain unchanged, according to a company update on Wednesday.

The total purchase price will be $1,021.25 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Aug. 26, the early tender date, as previously announced.

The total payment includes an early tender premium of $30 per $1,000 principal amount.

Holders who tender their notes after the early deadline will receive $991.25 per $1,000 of notes.

The company also will pay accrued interest.

The tender offer will run until 12:01 a.m. ET on Sept. 13.

Tendered notes may be withdrawn by the early tender date.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager. D.F. King & Co., Inc. (212 269-5550, 800 967-5071 or Novelis@dfKing.com) is the tender and information agent.

Originally, the tender was contingent on the company securing at least $500 million of proceeds from the sale of senior notes to fund the offer.

Novelis is an Atlanta-based aluminum-rolled products and aluminum recycling company.

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