Aleris to redeem 7 7/8%, 9½% notes, repay some loans via new issue

By Susanna Moon

Chicago, June 4 – Aleris International, Inc. said it plans to redeem its 7 7/8% senior notes due 2020 and 9½% senior secured notes due 2021 as well as repay some loans under its asset-based revolving credit facility using proceeds of new notes.

The company, a direct wholly owned subsidiary of Aleris Corp., plans to price $400 million principal amount of senior secured junior priority notes due 2023 in a private offering, according to a company announcement.

The new notes closing is expected to occur substantially concurrently with and is conditioned upon the company's entry into the new first-lien term loan facility and a proposed amendment to the ABL facility, the release noted.

As previously reported, the company will redeem $800 million of 9½% senior secured notes due 2021 on June 25 at a redemption price of 104.75 plus accrued interest to the redemption date, if it completes debt financing that raises at least $1.5 billion.

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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.