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Arconic talks upsized $600 million eight-year notes at 6¼%-6½% yield; pricing Tuesday
By Paul A. Harris
Portland, Ore., Feb. 4 – Arconic Inc. talked its upsized $600 million offering of eight-year second-lien secured notes (Ba3/B+/BB+) to yield 6¼% to 6½%, according to market sources.
Official talk comes tight to earlier guidance in the 6½% area, a trader said.
Books close at noon ET on Tuesday, and the Rule 144A and Regulation S for life notes are set to price thereafter. Timing was accelerated: the notes offering had initially been scheduled to remain in the market until Thursday.
Earlier in the week the tranche size increased from $400 million, as the company shifted $200 million to the bonds from the concurrent term loan.
Goldman Sachs & Co. LLC is the left bookrunner. J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.
ABN Amro Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. are the senior managers.
Citizens Capital Markets Inc., Huntington Capital Markets, ICBC Standard Bank plc, ING Financial Markets LLC, Nomura, Siebert Williams Shank & Co. LLC and Standard Chartered Bank are the co-managers.
The notes become callable after three years at par plus 50% of the coupon.
The Pittsburgh-based company plans to use the proceeds in connection with Arconic’s previously announced plan to separate into two stand-alone, publicly traded companies, and for general corporate purposes.
The issuing entity is Arconic Rolled Products Corp., which is a wholly owned subsidiary of Arconic, a producer of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets.
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