Howmet ups tender cap for 5.4% notes, tenders for 5.87% notes due 2022

By Wendy Van Sickle

Columbus, Ohio, April 22 – Howmet Aerospace, Inc. increased the cap of its cash tender offer to purchase its $950 million of 5.4% notes due 2021 (Cusip: 013817AV3) and also announced a concurrent tender offer for its 5.87% notes due 2022 (Cusip: 013817AQ4), according to a press release Wednesday evening.

The company is now offering to purchase up to $785 million of the 5.4% notes, increased from $500 million of notes when the offer was announced earlier on Wednesday.

Howmet is offering to purchase up to $210 million of the $627,182,000 of outstanding 5.87% notes.

The company is offering a total consideration of $1,030 per $1,000 5.4% note tendered under the offer.

The company is offering a total consideration of $1,042.50 per $1,000 5.87% note tendered.

In each case, the total consideration includes an early tender premium of $50.00 per $1,000 note.

Holders who tender their notes by 5 p.m. ET on May 5 will be eligible to receive the early tender premium.

Holders will also receive accrued interest.

In connection with the tender offer, Howmet is soliciting consents from holders of the 5.4% notes to amend some provisions of the indenture governing the notes to, among other things, eliminate substantially all of the restrictive covenants and some events of default applicable to the notes.

There is no consent solicitation for the 5.87% notes.

Tenders and consents may be withdrawn at or prior to the early tender date.

Howmet plans to fund the tender offers with proceeds of an upsized $1.2 billion split-rated issue of 6 7/8% five-year senior bullet notes (Ba3/BBB-) that priced in a Wednesday drive-by.

The tender offers and consent bid will expire at 12:01 a.m. ET on May 20.

Tendered notes may be subject to pro rata scaling.

J.P. Morgan Securities LLC (212 834-3424 or 866 834-4666) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (212 430-3774, 866 470-4300 or contact@gbsc-usa.com) is the tender and information agent.

Pittsburgh-based Howmet is a global provider of advanced engineered solutions for the aerospace and transportation industries.

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