US-based producer of aluminium rolled products and recycler, Novelis has announced the completion of the previously announced refinancing transactions to recapitalise its balance sheet.
The refinancing consisted of the sale of $1.1bn of 8.375% senior notes due 2017, $1.4bn of 8.75% senior notes due 2020 and a new $1.5bn secured term loan credit facility.
The proceeds were used to refinance the company’s prior secured term loan credit facility, to fund its previously announced cash tender offers for any and all of its $1.124bn 7.25% senior notes due 2015 and its $185m 11.50% senior notes due 2015.
The proceeds were also used to pay premiums, fees and expenses associated with the refinancing and a portion were used to fund a distribution of $1.7bn as a return of capital to Novelis’ parent company.
Novelis also replaced its existing $800m asset based loan (ABL) credit facility with a new $800m ABL facility.
Novelis CFO Steve Fisher said the refinancing provides with increased flexibility to address growth opportunities to further strengthen the global footprint.
At the closing of the refinancing transactions, Novelis paid an aggregate of about $1.3bn in total consideration, plus accrued and unpaid interest to holders.