Kaiser Aluminum sets roadshow for $500 million 8.25-year notes

By Paul A. Harris

Portland, Ore., Nov. 18 – Kaiser Aluminum Corp. plans to hold a roadshow on Monday and Tuesday for a $500 million offering of senior notes due March 1, 2028 (unsecured ratings Ba3/BB+), according to market sources.

Initial talk has the notes coming to yield in the high 4% area to 5%, a trader said.

Barclays is the lead left bookrunner. Wells Fargo Securities LLC is the joint bookrunner. J.P. Morgan Securities LLC and BofA Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life 8.25-year notes become callable after three years at par plus 50% of the coupon. Through the non-call period they feature a 40% equity clawback at par plus the coupon. The notes also feature a 101% poison put.

The Lake Forest, Calif.-based aluminum producer plans to use the proceeds to redeem its 5 7/8% senior notes and for general corporate purposes, which may include, among other things, capital spending, acquisitions and repurchases of its common stock.

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