Century Aluminum holders agree to exchange $128 million 1.75% convertibles, grant consents

By Angela McDaniels

Tacoma, Wash., Nov. 9 - Century Aluminum Co. agreed to issue approximately 11.4 million shares of common stock in exchange for approximately $128 million principal amount of its 1.75% convertible senior notes due 2024, according to its 10-Q report for the third quarter filed with the Securities and Exchange Commission on Monday.

After concluding these debt-for-equity exchanges, approximately $47 million principal amount of the convertibles will remain outstanding.

The company said the holders also agreed to consent to some amendments or modifications to the indenture governing the convertibles. As a result, Century Aluminum has received enough consents to amend the indenture.

As previously reported, a consent solicitation for the convertibles began Oct. 28 and will end at 11:59 p.m. ET on Nov. 10.

The company is seeking consents to amend the indenture to modify some events of default, including the exclusion of events of default relating to bankruptcies and insolvencies of its legacy domestic subsidiaries. It offered a consent fee of $2.50 for each $1,000 principal amount of convertibles.

Houlihan Lokey (212 497-7864) is the solicitation agent.

Century Aluminum is a Monterey, Calif.-based producer of primary aluminum products.

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