By Paul A. Harris
Portland, Ore., March 23 – Constellium NV priced an upsized $425 million issue of five-year senior secured notes (B2/B+) at par to yield 7 7/8% on Wednesday, according to a syndicate source.
The issue size was increased from $400 million.
The yield printed at the tight end of yield talk in the 8% area.
Goldman Sachs & Co. was the left bookrunner. Deutsche Bank Securities Inc. and HSBC Bank were the joint bookrunners.
The Netherlands-based developer of aluminum products plans to use the proceeds for general corporate purposes, which may include investments in Wise Metals and a joint venture with UACJ Corp., capital expenditures, debt repayment, working capital, research and development or future acquisitions. Constellium expects to invest €100 million of the proceeds in Wise Opco.
Earlier this year Constellium acquired Wise Metals and announced a joint venture with Japan-based UACJ.
| Issuer: | Constellium NV
|
| Amount: | $425 million, increased from $400 million
|
| Maturity: | April 1, 2021
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Deutsche Bank Securities Inc., HSBC Bank
|
| Co-managers: | SG CIB, BNP Paribas
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| First call: | April 1, 2018 at 103.933
|
| Trade date: | March 23
|
| Settlement date: | March 30
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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