By Paul A. Harris
Portland, Ore., March 22 – Aleris International, Inc. priced an upsized $550 million issue of five-year senior secured notes (B2/B) at par to yield 9½% on Tuesday, according to a syndicate source.
The issue size was increased from $450 million.
The yield printed on top of yield talk.
Timing was accelerated, as the roadshow had earlier been expected to continue through the Tuesday session, sources said.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Citigroup Global Markets Inc. were the joint bookrunners.
The Beachwood, Ohio-based producer of aluminum products plans to use the proceeds, including the additional $100 million resulting from the upsizing of the deal, to complete a cash tender offer for its $434.9 million of 7⅝% senior notes due 2018 or redeem and discharge any of those notes not purchased in the tender, and for general corporate purposes, which may include working capital and/or capital expenditures.
| Issuer: | Aleris International, Inc.
|
| Amount: | $550 million, increased from $450 million
|
| Maturity: | April 1, 2021
|
| Securities: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., Citigroup Global Markets Inc.
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 805 bps
|
| First call: | April 1, 2018 at 104.75
|
| Equity clawback: | 40% at 109.5 until April 1, 2018
|
| Trade date: | March 22
|
| Settlement date: | April 4
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9½% area
|
| Marketing: | Roadshow
|
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