Century Aluminum unit enters $130 million term loan facility

By Marisa Wong

Los Angeles, Nov. 3 – Nordural Grundartangi ehf, a wholly owned subsidiary of Century Aluminum Co., entered into a $130 million term facility agreement on Nov. 2 with Arion Bank hf. to fund the construction of a new billet casthouse at Grundartangi, according to an 8-K filing with the Securities and Exchange Commission.

The facility has an eight-year term commencing on the first drawdown date.

Interest is equal to Libor plus an applicable margin subject to Arion’s green financing framework. The margin ranges from 312 basis points to 422 bps depending on the net interest-bearing debt to EBITDA ratio.

The commitment fee on undrawn amounts is equal to 38 bps.

The company must also pay an arrangement fee equal to 0.78% of the total facility amount whether the facility is drawn or not.

Grundartangi has pledged up to a total of $430 million in assets and rights related to the Grundartangi smelter site and assets located at and within the smelter site as security for the prompt payment and full discharge of its debt under the new facility.

The facility contains a covenant that requires Grundartangi to maintain a minimum equity ratio.

As of Tuesday, no borrowings were outstanding under the facility.

The aluminum producer has headquarters in Chicago.

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