Aleris talks $400 million junior priority notes to yield 10¾%-11%; pricing Friday

By Paul A. Harris

Portland, Ore., June 7 – Aleris International, Inc. talked its $400 million offering of five-year senior secured junior priority notes (Caa2/CCC+) to yield 10¾% to 11%, according to market sources.

Official talk comes inside of initial price talk in the 11¼% area.

The deal is heard to be two-times oversubscribed and is seeing a significant roll from investors being taken out of the company's 7 7/8% senior notes due 2020 and 9½% senior secured notes due 2021, which are being redeemed in the refinancing deal.

In addition to price talk there were covenant changes.

Deutsche Bank Securities Inc. is left lead for the Rule 144A and Regulation S deal. Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC are also bookrunners.

The notes come with two years of call protection.

Proceeds, along with funds from a planned new senior secured first-lien term loan and cash on hand, will be used to redeem all of the company’s outstanding 7 7/8% senior notes due 2020 and 9½% senior secured notes due 2021 and to repay part of the borrowings under the existing asset-based revolving credit facility.

Aleris is a Cleveland-based producer 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.