Aleris buys $1.17 million 10 3/8% notes in tender

New York, March 9 - Aleris International, Inc. said it bought all the $1.17 million of its 10 3/8% senior secured notes due 2010 that were tendered in its offer to buy up to $5.5 million of the securities.

The tender expired at 5 p.m. ET on March 2.

Aleris paid par in cash for the notes plus accrued interest up to but excluding the date of purchase.

Following the tender, Aleris has $203.83 million of the notes outstanding.

Funding for the offer came from the remaining proceeds of a $24 million prepayment to Aleris of an intercompany note by its German subsidiary, VAW-IMCO Guss und Recycling GmbH, in February 2004.

The proceeds were deposited into a collateral account held by the note trustee and had been available for one year for capital expenditures by Aleris on equipment and other assets that became security for the notes.

Following the tender, the remaining $4.288 million in the collateral account was released and may be used for general corporate purposes by Aleris.

Aleris is a Beachwood, Ohio, recycler of aluminum and zinc.

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