JW Aluminum Finalizes $350 Million in Senior Secured Notes
Closing of JW Aluminum's Senior Secured Notes Offering
JW Aluminum Continuous Cast Company, along with its subsidiaries, has officially completed the offering of $350 million in aggregate principal of 10.250% Senior Secured Notes due in 2030. This significant financial step was part of a private offering exempt from the registration requirements of the Securities Act of 1933.
Purpose of the Proceeds
The funds raised from this offering, along with the existing cash reserves, will primarily be allocated for the redemption of the company's outstanding 10.25% senior secured notes maturing in 2026. This redemption is set to occur shortly and it comes with the attractive offer of a redemption price of 100.000% of the principal, supplemented by any accrued interest up until the redemption date. Additionally, the company plans to distribute dividends of up to $50 million to its parent company and will use some of the proceeds for general corporate purposes.
Legal Considerations for the Offering
This financial transaction was executed while adhering to regulations designed to safeguard both investors and the company. The offering and sale of the Senior Secured Notes were not registered under the Securities Act or any applicable state securities laws. Hence, they are available exclusively to qualified institutional buyers, leveraging Rule 144A under the Securities Act. The offering also respects the stipulations outlined in Regulation S, which governs transactions outside the United States.
About JW Aluminum
JW Aluminum stands out as a prominent U.S. manufacturer of specialty flat-rolled aluminum products. Their focus is on niche markets within the expansive North American flat-rolled aluminum sector, which reports volumes of approximately 10.9 billion pounds. The range of products they offer primarily caters to several key industries, including building and construction, HVAC, refrigeration, and transportation. With its headquarters situated in Charleston, the company operates efficient plants in Mount Holly, South Carolina, and Russellville, Arkansas.
Company Contacts
For more information about JW Aluminum and their products, Philip Cavatoni, the Chief Financial Officer, is available for inquiries at 843-764-8302.
Frequently Asked Questions
What is the total amount raised through the offering?
JW Aluminum has successfully raised $350 million through the offering of their Senior Secured Notes.
What will the proceeds be used for?
The proceeds are mainly intended for redeeming existing senior secured notes, paying dividends, and for general corporate needs.
What kind of interest rate do the new notes carry?
The new Senior Secured Notes carry an interest rate of 10.250% and are due in 2030.
Are the notes registered under the Securities Act?
No, the notes were not registered under the Securities Act, and are restricted to certain institutional buyers.
Where is JW Aluminum headquartered?
JW Aluminum is headquartered in Charleston, South Carolina.
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