New Issue: Aleris prices upsized $250 million tap of 9½% notes due 2021 at 107

By Paul A. Harris

Portland, Ore., Feb. 9 – Aleris International, Inc. priced an upsized $250 million tack-on to its 9½% senior secured notes due April 1, 2021 (B2/B) at 107 to yield 6.954% on Thursday, according to a syndicate source.

The issue size was increased from $200 million.

The reoffer price came on top of price talk in the 107 area.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. were the joint bookrunners.

The Beachwood, Ohio-based producer of aluminum products plans to use the proceeds for general corporate purposes.

Issuer:	Aleris International, Inc.
Amount:	$250 million, increased from $200 million
Proceeds:	$267 million
Maturity:	April 1, 2021
Security description:	Tack-on to 9½% senior secured notes due April 1, 2021
Bookrunners:	Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc.
Coupon:	9½%
Price:	107
Yield:	6.954%
Spread:	572 bps
First call:	April 1, 2018 at 104.75
Equity clawback:	40% at 109.5 until April 1, 2018
Trade date:	Feb. 9
Settlement date:	Feb. 14
Ratings:	Moody's: B2
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	107 area
Marketing:	Quick to market
Original issue:	$550 million priced at par on March 22, 2016
Fungibility:	Tack-on notes will become immediately fungible with original notes
Total issue size:	$800 million

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