New Issue: Kaiser Aluminum upsizes to $225 million, sells eight-year notes at par to yield 8¼%

By Paul A. Harris

Portland, Ore., May 18 - Kaiser Aluminum Corp. priced an upsized $225 million issue of eight-year senior notes (Ba3/BB-) at par to yield 8¼% on Friday, according to a market source.

The yield printed at the wide end of the 8% to 8¼% yield talk.

J.P. Morgan Securities LLC ran the books.

The Foothill Ranch, Calif.-based producer of semi-fabricated specialty aluminum products plans to use the proceeds for general corporate purposes.

Issuer:	Kaiser Aluminum Corp.
Amount:	$225 million, increased from $200 million
Maturity:	June 1, 2020
Securities:	Senior notes
Bookrunner:	J.P. Morgan Securities LLC
Co-managers:	Wells Fargo Securities LLC (left lead co), Bank of America Merrill Lynch, UBS Investment Bank
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	693 bps
Call feature:	Make-whole call at Treasuries plus 50 bps until June 1, 2016, then callable at 104.125, 102.063, par on and after June 1, 2018
Equity clawback:	35% at 108.25 until June 1, 2015
Change-of-control put:	101%
Trade date:	May 18
Settlement date:	May 23
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8% to 8¼%
Marketing:	Roadshow

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