Kaiser Aluminum driving by with $300 million five-year notes; initial talk 7% area

By Paul A. Harris

Portland, Ore., April 21 – Kaiser Aluminum Corp. plans to price a $300 million offering of five-year senior notes (B1/BB+) in a Tuesday drive-by following a morning conference call with investors, according to market sources.

Initial talk has the Rule 144A for life deal coming to yield in the 7% area, according to a trader.

Joint bookrunner Barclays will bill and deliver. J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. BofA Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The notes feature a make-whole call for the first two years, after which they become callable at par plus 50% of the coupon. They also feature a 40% equity clawback at par plus the coupon during the non-call period and a 101% poison put.

The Lake Forest, Calif.-based aluminum producer plans to use the proceeds for general corporate purposes, which may include, among other things, capital spending and acquisitions.

© 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.