Howmet Aerospace says cap reached by early tender offer deadline

Chicago, Sept. 1 – Howmet Aerospace, Inc. announced the early results for its cash tender offer for up to $600 million of its $1.2 billion outstanding 6 7/8% notes due 2025 (Cusip: 443201AA6), according to a press release.

As of the early deadline at 5 p.m. ET on Aug. 31, the offer was oversubscribed with the company receiving tenders for $619,189,000 of the notes.

The withdrawal deadline was also the early deadline.

The company will accept the tendered notes applying a proration factor of 0.9689999. Due to the proration mechanics, this will result in Howmet Aerospace accepting $599,984,000 of the notes.

Early settlement is planned for Sept. 2.

The offer was subject to a financing condition. A new note offering is scheduled to close on Wednesday. Funding for the tender offer will come from the new notes and from cash on hand. The closing of the new notes will fulfill the financing condition.

Noteholders who tendered their notes by the early deadline will receive the full consideration, $1,175 per $1,000 note, an amount that includes a $50 early tender premium.

Interest will also be paid to the settlement date.

The tender offer officially expires at midnight ET on Sept. 15. However, the offer was fully subscribed by the early deadline and the company does not expect to accept for purchase any notes tendered after the deadline.

Final settlement would have been Sept. 17.

J.P. Morgan Securities LLC (212 834-3424, 866 834-4666), Citigroup Global Markets Inc. (212 702-1840, 800 558-3745) and BMO Capital Markets Corp. (212 702-1840, 833 418-0762) are acting as lead dealer managers.

Global Bondholder Services Corp. (212 430-3774, 866 807-2200, contact@gbsc-usa.com) is the tender and information agent.

Pittsburgh-based Howmet is a global provider of advanced engineered solutions for the aerospace and transportation industries.

© 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.