Aleris extends tender offer for 9% and 10 3/8% notes

By Laura Lutz

Des Moines, July 21 - Aleris International, Inc. continued its tender offer for its 10 3/8% senior secured notes due 2010 and 9% senior notes due 2014 until 5 p.m. ET on July 31.

The offer was previously set to expire July 28.

The tender offer was extended in order to coordinate with Aleris's closing of the acquisition of the downstream aluminum business of Corus Group plc and the related debt financings.

Holders had tendered $200.83 million, or 96.17%, of the 10 3/8% notes and $124.91million, or 99.93%, of the 9% notes by July 28.

Aleris announced the consent solicitation and tender offer June 30.

For each $1,000 principal amount of notes, Aleris will pay $1,134.96 for the 9% notes and $1,100.78 for the 10 3/8% notes, plus accrued interest.

The total includes a consent payment of $20 per $1,000 for holders who tendered before the July 14 consent deadline.

Aleris received the necessary consents by the deadline. As a result, a supplemental note indenture, which eliminates or diminishes the restrictive covenants and events of default, will go into effect when the company buys the notes.

The offer is subject to conditions including Aleris receiving necessary funding and the acquisition closing.

Deutsche Bank Securities Inc. is dealer manager and solicitation agent (call collect 212 250-6008). Mackenzie Partners, Inc. is the depositary and information agent (call collect 212 929-5500 or 800 322-2885).

Aleris is an aluminum company in Beachwood, Ohio.

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