Aleris talks $400 million eight-year notes with 8% area yield

By Paul A. Harris

Portland, Ore., Oct. 17 - Aleris International, Inc. talked its $400 million offering of eight-year senior notes (B2/B) with a yield in the 8% area, a market source said on Wednesday.

The deal is set to price on Thursday afternoon.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch are the joint bookrunners.

KeyBanc Capital Markets, Moelis Capital Partners and UBS Investment Bank are the co-managers.

The Rule 144A and Regulation S with registration rights notes become callable in three years at par plus 75% of the coupon.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures and/or funding the completion of construction of an aluminum rolling mill in China. In addition proceeds will be used to fund potential acquisition opportunities. Also, after March 31, 2013, proceeds could be used to fund one or more cash dividends to Aleris Corp.

Aleris is a Beachwood, Ohio-based producer of aluminum rolled products and extrusions, aluminum recycling and specification alloy.

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