Novelis launches $1.5 billion term loan B at Libor plus 400-425 bps

By Sara Rosenberg

New York, Nov. 30 - Novelis Inc. launched its $1.5 billion senior secured six-year term loan B on Tuesday with price talk of Libor plus 400 basis points to 425 bps with a 1.5% Libor floor and an original issue discount of 98½ to 99, according to a market source.

There is 101 soft call protection for one year, the source said.

Bank of America, Citigroup, JPMorgan, RBS and UBS are the lead banks on the deal.

The company's $2.3 billion credit facility also includes an $800 million asset-based loan.

Proceeds, along with $2.5 billion of senior notes, will be used to refinance a $1.125 billion term loan and an $800 million asset-based loan, to fund a tender offer for $1.124 billion 7¼% senior notes and $185 million 11½% senior notes, and to fund a $1.7 billion distribution to Novelis' parent company.

The tender offer expires on Dec. 28.

Completion of the recapitalization is conditioned on the company raising at least $4 billion from one or more offerings of senior notes and the entry into the new credit facility.

Novelis is an Atlanta-based aluminum rolled products and beverage can recycling company.

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