Published on 2/4/2011 in the Prospect News High Yield Daily.
New Issue: Aleris prices $500 million seven-year notes at par to yield 7 5/8%
By Paul A. Harris
Portland, Ore., Feb. 4 - Aleris International, Inc. priced a $500 million issue of seven-year senior notes (B1/B+/) at par to yield 7 5/8% on Friday, according to an informed source.
The yield printed at the tight end of the 7¾% area price talk.
Bank of America Merrill Lynch was the lead left bookrunner. Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and UBS Investment Bank were the joint bookrunners.
Proceeds will be used to fund a distribution of about $300 million to the company' stockholders and for general corporate purposes, including financing for the construction of an aluminum rolling mill in China.
Aleris International is a Beachwood, Ohio-based producer of aluminum rolled products and extrusions, aluminum recycling and specification alloy.
| Issuer: | Aleris International, Inc.
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2018
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Bank of America Merrill Lynch
|
| Joint bookrunners: | Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Investment Bank
|
| Co-managers: | KeyBanc Capital Markets, Moelis Securities
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 440 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2014, then callable at 105.719, 103.813, 101.906, par on and after Feb. 15, 2017
|
| Equity clawback: | 35% at 107.625 until Feb. 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
|
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