The Notes were priced at par value and will bear an interest rate of 4.750% per annum. The Notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be guaranteed, jointly and severally, on a senior unsecured basis, by Novelis, and by certain of Novelis' subsidiaries. Novelis expects to close the offering of the Notes on 16 January 2020, subject to the satisfaction of customary closing conditions.
Novelis intends to use the net proceeds of the offering to
(i) refinance all of Novelis Corporation's 6.25% Senior Notes due 2024 Notes,
(ii) pay a portion of the consideration for the expected acquisition of Aleris Corporation, a Delaware corporation ("Aleris") pursuant to a merger agreement signed on 26 July 2018 by and among Novelis, Aleris, Novelis Acquisitions LLC, a Delaware limited liability company and an indirect subsidiary of Novelis and OCM Opportunities ALS Holdings, L.P., a Delaware limited partnership, solely as representative for
the stockholders, the option holders and the RSU holders of Aleris (the "Merger") and pay fees and expenses incurred in connection therewith and
(iii) use any remaining proceeds for general corporate purposes.
The consummation of this offering is not contingent on completion of the Merger. If for any reason the Merger is not consummated, Novelis intends to use any remaining proceeds from this offering for general corporate purposes.
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