By Paul A. Harris
Portland, Ore., May 11 – Kaiser Aluminum Corp. priced an upsized $550 million issue of 10-year senior notes (B1/BB/BB) at par to yield 4½% in a Tuesday drive-by, according to market sources.
The issue size increased from $500 million
The yield printed at the tight end of the 4½% to 4¾% yield talk. Initial guidance was in the high 4% area.
The deal was heard to be four-times oversubscribed, a trader said.
Barclays was the lead bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Wells Fargo Securities LLC and BofA Securities Inc.
The Lake Forest, Calif.-based aluminum producer plans to use the proceeds to refinance its 6½% senior notes due 2025.
| Issuer: | Kaiser Aluminum Corp.
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| Amount: | $550 million, increased from $500 million
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| Maturity: | June 1, 2031
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| Securities: | Senior notes
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| Left bookrunner: | Barclays
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| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC and BofA Securities Inc.
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| Co-managers: | Goldman Sachs & Co. LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 4½%
|
| Price: | Par
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| Yield: | 4½%
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| Spread: | 288 bps
|
| Call protection: | Five years
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| Trade date: | May 11
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| Settlement date: | May 20
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| Ratings: | Moody's: B1
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| S&P: BB
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| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4½% to 4¾%
|
| Marketing: | Drive-by
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