By Paul A. Harris
Portland, Ore., April 22 – Howmet Aerospace Inc. priced an upsized $1.2 billion split-rated issue of 6 7/8% five-year senior bullet notes (Ba3/BBB-) in a Wednesday drive-by, according to market sources.
J.P. Morgan Securities LLC was the bookrunner.
The offering was increased from $1 billion.
Price talk was in the 7% area. Initial price talk was in the 7¾% area.
The Pittsburgh-based provider of advanced engineered solutions for the aerospace and transportation industries plans to use the proceeds to fund a tender offer for up to $500 million of its 5.4% notes due 2021 and for general corporate purposes, which may include debt repayment.
| Issuer: | Howmet Aerospace Inc.
|
| Amount: | $1.2 billion, increased from $1 billion
|
| Tenor: | Five years
|
| Securities: | Senior notes
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 6 7/8%
|
| Call protection: | Non-callable
|
| Trade date: | April 22
|
| Settlement date: | April 24
|
| Ratings: | Moody's: Ba3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 7% area
|
| Marketing: | Drive-by
|
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