Aleris to redeem 9˝% senior secured notes due 2021 on June 25

New York, June 1 – Aleris International, Inc. will redeem its $800 million of 9˝% senior secured notes due 2021 on June 25, according to a notice.

The redemption price is 104.75 plus accrued interest to the redemption date.

Completion of the redemption is subject to conditions including the conclusion of a debt financing that raises at least $1.5 billion.

With $23 million of cash on hand, the proceeds from the new debt will also be used to redeem the company’s 7 7/8% senior notes due 2020, to repay $180 million of borrowings on the company’s revolving credit facility and to pay fees and expenses.

A further condition is that Aleris amend its revolver to extend the maturity to 2023.

As previously reported, Aleris is in the market with a $1.1 billion covenant-light first-lien term loan due February 2023 and also plans to raise $400 million of new senior secured second-lien debt.

Aleris is a Cleveland-based manufacturer and seller of aluminum rolled products.

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