Constellium Launches Proposed Senior Notes Offering

Rhea-AI Summary

Constellium SE (NYSE: CSTM) announced a proposed private offering of approximately $300 million in senior unsecured notes due 2028. The proceeds will fund the redemption of 100% of its 4.625% Senior Notes due 2021 and general corporate purposes. The redemption date is expected on July 16, 2020, contingent on the notes offering's success. The notes will be sold to qualified institutional buyers and are not registered under the Securities Act, limiting their availability to retail investors.

Positive

• Proposed offering of $300 million could improve financial flexibility.
• Redemption of higher interest 4.625% Senior Notes could reduce future interest expenses.

Negative

• Successful completion of the notes offering is uncertain, which may hinder planned financial strategies.

PARIS, June 16, 2020 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) (“Constellium”) announced today the commencement of a proposed private offering of approximately $300 million of U.S. dollar denominated senior unsecured notes due 2028 (the “Notes”), subject to market and other conditions (the “Notes Offering”).

Constellium intends to use the net proceeds of the offering to fund the redemption of 100% of its outstanding 4.625% Senior Notes due 2021 (the “Redemption”), including the payment of accrued interest, and the remainder for general corporate purposes and to pay related fees and expenses. There can be no assurance that Constellium will successfully complete the Notes Offering on the terms described herein or at all.

The Company expects the redemption date for the 2021 Notes to occur on July 16, 2020 (the “Redemption Date”). The redemption price for the 2021 Notes is 100% of the aggregate principal amount of the outstanding 2021 Notes, plus accrued and unpaid interest, if any, to the Redemption Date. The Redemption is conditioned on the consummation of the Notes Offering.

Important Additional Information

The Notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been 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 the registration requirements of the Securities Act and applicable state laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase shares of the Company, the Notes or any other securities, shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful, and shall not constitute a notice of redemption of any of the 2021 Notes.

The Notes are not intended to be offered, sold, transferred or otherwise made available to and should not be offered, sold, transferred or otherwise made available, as part of their initial distribution or at any time thereafter, directly or indirectly to any retail investor in the European Economic Area (the “EEA”) or the United Kingdom (the “UK”). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the Regulation (EU) 2017/1129 on the prospectus to be published when the securities are offered to the public or admitted to trading. Consequently, no key information document required by Regulation (EU) No 1286/2014 for offering or selling the Notes or otherwise making available to retail investors in the EEA or UK has been prepared and therefore offering or selling the Notes to any retail investor in the EEA or UK may be unlawful. Solely for the purposes of each manufacturer’s product approval process in MiFID II, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market of the Notes is eligible counterparties and professional clients only (each as defined in MiFID II) and (ii) all channels for distribution of such Notes to eligible counterparties and professional clients are appropriate.

About Constellium
Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €5.9 billion of revenue in 2019.

www.constellium.com

Forward-looking Statements

Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations, including the length and magnitude of disruption resulting from the global COVID-19 pandemic; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

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50%; width:50%; min-width:50%;">Ryan Wentling – Investor Relations Phone: +1 (443) 988 0600 Investor-relations@constellium.com	50%; width:50%; min-width:50%;">Delphine Dahan-Kocher – Communications Phone: +1 (443) 420 7860 delphine.dahan-kocher@constellium.com

FAQ

What is the purpose of Constellium's $300 million notes offering?

The offering aims to fund the redemption of 4.625% Senior Notes due 2021 and for general corporate purposes.

When is the expected redemption date for the 2021 Senior Notes?

The redemption date is expected to be July 16, 2020.

What risks does Constellium face with the notes offering?

There is uncertainty regarding the successful completion of the notes offering.

Who can buy the new senior unsecured notes from Constellium?

The notes will be offered to qualified institutional buyers under Rule 144A.

What is the interest rate of the Senior Notes being redeemed?

The Senior Notes being redeemed have an interest rate of 4.625%.