By Paul A. Harris
Portland, Ore., April 21 – Kaiser Aluminum Corp. priced a $300 million issue of 6½% five-year senior notes (B1/BB+/BB) at par with a 6.499% yield to maturity, according to market sources.
The yield came at the tight end of the 6½% to 6¾% yield talk and tighter than initial guidance in the 7% area.
Bookrunners were Barclays (bill and deliver), J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
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.
| Issuer: | Kaiser Aluminum Corp.
|
| Amount: | $300 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | BofA Securities Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield to maturity: | 6.499%
|
| Spread: | 616 bps
|
| First call: | May 1, 2022 at 103.25
|
| Trade dates: | April 21
|
| Settlement date: | April 28
|
| Ratings: | Moody's: B1
|
| S&P: BB+
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Drive-by
|
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