New Issue: Aleris upsizes to $500 million, prices eight-year notes at par to yield 7 7/8%

By Paul A. Harris

Portland, Ore., Oct. 18 - Aleris International, Inc. priced an upsized $500 million issue of eight-year senior notes (B2/B/) at par to yield 7 7/8% on Thursday, according to market sources.

The yield printed at the tight end of yield talk that was set in the 8% area.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch were the joint bookrunners for the issue, which was upsized from $400 million.

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.

Issuer:	Aleris International, Inc.
Amount:	$500 million, increased from $400 million
Maturity:	Nov. 1, 2020
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Bank of America Merrill Lynch
Co-managers:	KeyBanc Capital Markets, Moelis, UBS Investment Bank
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	643 bps
Call protection:	Three years
Trade date:	Oct. 18
Settlement date:	Oct. 23
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8% area
Marketing:	Roadshow

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