Aleris begins tender for $434.93 million 7 5/8% senior notes due 2018

By Susanna Moon

Chicago, March 21 – Aleris Corp.’s wholly owned subsidiary, Aleris International, Inc., said it began a cash tender offer for its $434,933,000 of outstanding 7 5/8% senior notes due 2018.

The total purchase price is $1,021.25 for each $1,000 principal amount of notes tendered by 5 p.m. ET on April 1, the early tender date.

The total payment includes an early tender premium of $30.00 per $1,000 principal amount.

Those who tender their notes after the early deadline will receive $991.25 per $1,000 of notes.

The company also will pay accrued interest to but excluding the settlement date, which will be April 4 for early tendered notes.

The tender offer will end at midnight ET on April 15.

Tendered notes may be withdrawn at any time before the early tender deadline.

Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653) is the dealer manager. D.F. King & Co., Inc. (866 406-2287 or 212 269-5550) is the tender agent and information agent.

Aleris also plans to issue a call to redeem any notes that remain outstanding after the offer ends at 101.906% of par plus accrued interest to the redemption date of April 20.

The offer is not conditioned upon any minimum amount of notes being tendered.

The redemption is conditioned on the company having completed a debt financing with enough proceeds, along with up to $12 million of cash on hand, to fund the offer.

Aleris is a Cleveland-based maker of aluminum rolled products.

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