Kaiser Aluminum talks $500 million 8.25-year notes at 4¾% area yield; pricing Tuesday

By Paul A. Harris

Portland, Ore., Nov. 19 – Kaiser Aluminum Corp. talked its $500 million offering of senior notes due March 1, 2028 (Ba3/BB+) to yield in the 4¾% area, according to market sources.

Official talk comes tight to initial guidance in the high 4% area to 5%, a trader said.

Books close at 2 p.m. ET on Tuesday, and the deal is set to price thereafter.

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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