Novelis announces early results of tender offers for 7¼%, 11½% notes

By Marisa Wong

Madison, Wis., Dec. 9 - Novelis Inc. said that as of the consent deadline of its previously announced tender offers, it received tenders for $1,049,363,000, or 93.35%, of its $1,124,159,000 of outstanding 7¼% senior notes due 2015 and $183,705,000, or 99.3%, of its $185 million of outstanding 11½% senior notes due 2015.

Novelis began cash tender offers and consent solicitations for any and all of its 7¼% notes and 11½% notes on Nov. 26. The consent deadline of the offer was 5 p.m. ET on Dec. 8. The tender offers are scheduled to expire at 11:59 p.m. ET on Dec. 28.

The company is seeking consents to amend the notes to eliminate or modify substantially all restrictive covenants and events of default.

Based on the tenders and consents received, the proposed amendments for each series of notes have been approved.

Holders will receive a total consideration of $1,032.50 for each $1,000 principal amount of tendered 7¼% notes and $1,258.50 per $1,000 of 11½% notes.

Each payout includes a $30 consent fee for those who tendered prior to the consent deadline.

As previously reported, the offers are subject to the completion of one or more senior note issues with at least $4 billion of proceeds and consents from a majority of noteholders.

Novelis also plans to secure new senior secured credit facilities to refinance the notes and its existing senior secured credit facilities.

The company expects the early settlement date to be Dec. 17.

Novelis plans to redeem any notes that remain outstanding after the completion of the tender offers.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC, RBS Securities Inc. and UBS Securities LLC are the dealer managers and solicitation agents.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 387-1500 for noteholders) is the information agent and depositary.

Novelis is an Atlanta-based aluminum rolling and recycling company.

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