Novelis seeks tenders consents for all $1.4 billion of 7¼% notes

By Laura Lutz

Des Moines, May 16 - Novelis Inc. announced a tender offer and consent solicitation for its entire $1.4 billion outstanding principal amount of 7¼% senior notes due 2015.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and events of default. Adoption of the amendments requires consent of holders of a majority of the notes.

The tender offer will expire at 8 a.m. ET on June 15. The consent deadline is 5 p.m. ET on May 31.

For each $1,000 principal amount of notes tendered before the consent deadline, holders will receive $1,015.

The payout includes a consent payment of $5.00 per $1,000 principal amount of notes. Notes tendered after the early deadline will not receive the consent payment.

The company will also pay accrued interest for the notes.

Settlement of the offer depends on receipt of consents from holders of a majority of the notes.

The tender offer is being conducted as a result of Hindalco Industries Ltd.'s recently completed acquisition of Novelis, which constituted a change of control under the note indenture.

UBS Investment Bank (888 722-9555 or collect 203 719-4210) and ABN Amro Inc. (212 409-6862) are the dealer managers. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information agent.

Atlanta-based Novelis focuses on aluminum rolled products and aluminum can recycling.

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