Novelis fails to get needed consents, extends change-of-control offer for 7¼% notes

By Angela McDaniels

Seattle, June 15 - Novelis Inc. received tenders and consents from holders of $10.717 million, or 0.77%, of its $1.4 billion 7¼% senior notes due 2015 during a tender offer that ended on Friday, according to a company news release.

The company needed consents from holders of a majority of the notes. Because this condition was not satisfied, Novelis said it will return all tendered notes and the note indenture will not be amended.

The proposed amendments would have eliminated substantially all of the restrictive covenants and events of default. Novelis was offering a consent fee of $5.00 per $1,000 principal amount of notes.

Offer extended

Novelis also announced the extension of its change-of-control offer to 5 p.m. ET on June 27 from June 15.

As of the original expiration date, $60,000 of the notes had been tendered under the change-of-control offer.

The company will pay $1,010 per $1,000 principal amount of notes and accrued interest.

The offer is being conducted in connection with Hindalco Industries Ltd.'s recently completed acquisition of Novelis, which constituted a change of control under the note indenture.

UBS Investment Bank (888 722-9555 or collect 203 719-4210) and ABN Amro Inc. (212 409-6862) are the dealer managers. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information agent.

Atlanta-based Novelis focuses on aluminum rolled products and aluminum can recycling.

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