Aleris voluntarily reduces revolver by $250 million

By Jennifer Chiou

New York, Jan. 2 - Aleris International Inc. amended its senior secured asset-based revolving credit facility, voluntarily decreasing the size by $250 million to $844 million, according to an 8-K filed with the Securities and Exchange Commission.

The follows a Sept. 15 increase to $1.094 billion from $850 million. At that time, pricing on the revolver was changed to Libor plus 250 basis points, up from Libor plus 150 bps.

Aleris said that it will apply the entire $250 million reduction to reduce the U.S./European commitments so that the total Canadian commitments and U.S./European commitments will now be $35 million and $809 million, respectively.

On Dec. 26, an affiliate of TPG, the primary stockholder of the company, agreed to provide a short-term letter of credit in connection with an arrangement with a metal hedge counterparty of a Aleris subsidiary in the amount of about $45 million. This arrangement facilitated the release of cash that had previously been used for margin requirements under the related metal hedging obligations, the filing said.

Deutsche Bank is the administrative agent on the deal.

Aleris is a Beachwood, Ohio-based producer of aluminum rolled products and extrusions, aluminum recycling and specification alloy.

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