Century Aluminum Company Announces Proposed Offering of $250 Million of Senior Secured Notes

Rhea-AI Summary

Century Aluminum Company (NASDAQ: CENX) announced a proposed offering of $250 million in senior secured notes due 2025. In conjunction, the company has initiated a cash tender offer for its existing $250 million in 7.500% senior secured notes due 2021. The net proceeds from the new notes will finance the purchase of existing notes and cover expenses related to the offering. The new notes will be sold to qualified institutional buyers under Rule 144A and are not registered under the Securities Act. Completion of these transactions is not guaranteed.

CHICAGO, June 18, 2020 (GLOBE NEWSWIRE) -- Century Aluminum Company (NASDAQ: CENX) (“Century”) announced today a proposed offering of $250 million aggregate principal amount of senior secured notes due 2025 (the “New Notes”). Century also announced today that it has commenced a cash tender offer (the “Tender Offer”) for any and all of its $250,000,000 outstanding principal amount of 7.500% Senior Secured Notes due 2021 (the “Existing Notes”). Net proceeds from the sale of the New Notes, together with available cash on hand, will be used to finance the purchase of the Existing Notes in the Tender Offer and the redemption of any Existing Notes not acquired in the Tender Offer, as well as to pay fees and expenses related to the offering of the New Notes.

The New Notes will be offered and sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 (the “Securities Act”) and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The New Notes to be offered have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the New Notes nor shall there be any sale of New Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

About Century Aluminum

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century’s corporate offices are located in Chicago, Illinois.  Visit www.centuryaluminum.com for more information.

Cautionary Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, without limitation, statements with respect to Century’s intention to complete the offering of the New Notes, the Tender Offer and the redemption of any Existing Notes not tendered in the Tender Offer. Forward-looking statements are statements about future events and are based on our current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved, and we do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

Contact
Peter Trpkovski
(Investors and media)
312-696-3112

Source: Century Aluminum Company

 

FAQ

What is the purpose of Century Aluminum's proposed offering of $250 million in senior secured notes (CENX)?

The offering aims to finance the purchase of existing senior secured notes due 2021 and cover associated expenses.

What amount of existing senior secured notes is Century Aluminum looking to repurchase?

Century Aluminum is looking to repurchase $250 million of its existing senior secured notes due 2021.

What are the terms of the new senior secured notes being offered by Century Aluminum (CENX)?

The new senior secured notes are due in 2025 and will be offered to qualified institutional buyers under Rule 144A.

Is there any risk associated with the tender offer and new notes offering by Century Aluminum?

Yes, there is no assurance that the tender offer or the new notes offering will be completed.