Howmet Aerospace gets $200 million, ¥33 billion term loans due 2026

By Wendy Van Sickle

Columbus, Ohio, Nov. 27 – Howmet Aerospace, Inc. entered on Nov. 22 into term loan agreements providing for a $200 million senior unsecured delayed-draw term loan facility and a ¥33 billion senior unsecured delayed-draw term loan facility, which both mature on Nov. 22, 2026, according to an 8-K filing with the Securities and Exchange Commission.

Truist Bank is administrative agent for the dollar loan and Sumitomo Mitsui Banking Corp. is the administrative agent for the loan that is denominated in yen.

Borrowings under the dollar facility will bear interest at term SOFR plus a margin of 175 basis points based on current credit ratings. The margin can vary with the company’s ratings. The loan amortizes at 2.5% in the second year and 5% in the third year.

The yen-denominated loans will bear interest at the Cumulative Compounded RFR rate utilizing the Tokyo Overnight Average Rate plus an applicable margin based on the credit ratings debt. Based on current rating the margin would be 175 bps.

Howmet must maintain a consolidated net debt to consolidated EBITDA ratio as of the end of each fiscal quarter for the period of the four fiscal quarters most recently ended of at least 3.75x.

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

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