Aleris International, Inc. Announces Closing Of Senior Secured Notes Offering
OREANDA-NEWS. Aleris International, Inc. (the "Company"), the direct wholly owned subsidiary of Aleris Corporation ("Aleris"), today announced that it completed its previously announced offering of $550 million aggregate principal amount of 9.50% senior secured notes due 2021 (the "Notes").
The Notes are guaranteed by Aleris and certain of the Company's subsidiaries. The Notes are secured by a first-priority lien on substantially all of our and the guarantors' owned and material U.S. real property, equipment and intellectual property and stock of the Company and the guarantors (other than Aleris) and other subsidiaries (including 100% of the outstanding non-voting stock (if any) and 65% of the outstanding voting stock of certain "first-tier" foreign subsidiaries and certain "first-tier" foreign subsidiary holding companies), but subject to permitted liens and excluding (i) inventory, accounts receivable, deposit accounts and related assets, which assets secure the Company's $600 million asset backed revolving credit facility on a first-priority basis, (ii) the assets associated with the Company's Lewisport, Kentucky facility and (iii) certain other excluded assets.
The net proceeds from the sale of the Notes will be used (i) to complete a cash tender offer (the "Tender Offer") for any and all of its outstanding $434.9 million aggregate principal amount of 7?% Senior Notes due 2018 (the "2018 Notes"), including the payment of related fees and expenses, (ii) to redeem and discharge any of its outstanding 2018 Notes that are not purchased in the Tender Offer, including the payment of related fees and expenses and any redemption premium, and (iii) for general corporate purposes, which may include working capital and/or capital expenditures.
The Notes were offered and sold in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended (the "Securities Act"). The Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act.
The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release is for informational purposes only and is not an offer to sell or purchase nor the solicitation of an offer to sell or purchase securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful. Any offer of the Notes was made only by means of a private offering memorandum.
This press release does not constitute an offer to purchase the 2018 Notes or a notice of redemption thereof.
About Aleris
Aleris is a privately held, global leader in aluminum rolled products serving diverse industries including aerospace, automotive, building and construction, commercial transportation and industrial manufacturing. Headquartered in Cleveland, Ohio, Aleris operates production facilities in North America, Europe and Asia.
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