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CHICAGO - Century Aluminum Company (NASDAQ:CENX), with a market capitalization of $2.1 billion and showing strong profitability in recent quarters according to InvestingPro data, announced Tuesday it has closed a private offering of 6.875% senior secured notes due August 2032, raising gross proceeds of $400 million.
The company said the net proceeds of approximately $395 million, after deducting initial purchasers’ discount, commissions and estimated offering expenses, will be used to refinance its 7.50% Senior Secured Notes due 2028, repay borrowings under its credit facilities, and cover fees and expenses related to the offering. The refinancing comes as Century maintains a healthy current ratio of 1.84 and a manageable debt-to-equity ratio of 0.66.
The notes were issued at 100% of their aggregate principal amount and will pay interest semi-annually on February 1 and August 1, beginning February 1, 2026. They will mature on August 1, 2032, unless earlier redeemed or repurchased.
According to the press release, the notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and have not been registered under the Securities Act or state securities laws.
Century Aluminum describes itself as the largest producer of primary aluminum in the United States, with additional production facilities in Iceland, the Netherlands, and Jamaica.
The transaction represents a slight reduction in interest rate from the company’s previous 7.50% notes to the new 6.875% rate on the secured notes.
In other recent news, Century Aluminum Company reported its first-quarter 2025 earnings, revealing a significant miss in earnings per share (EPS) compared to expectations. The company’s adjusted EPS was $0.36, falling short of the forecasted $0.61. However, revenue exceeded predictions, coming in at $634 million against an anticipated $577.2 million. Additionally, Century Aluminum announced it has priced a private offering of $400 million in senior secured notes due August 2032, with an interest rate of 6.875% per annum. The proceeds from this offering are intended to refinance existing notes and repay borrowings under its credit facilities. In response to a recent U.S. government decision to double tariffs on imported primary aluminum, Century Aluminum plans to construct the first new U.S. aluminum smelter in five decades, which is expected to double production capacity. S&P Global Ratings has revised the outlook for Century Aluminum to positive from stable, citing improving credit metrics and profitability. The company’s credit rating has been affirmed at ’B-’, with senior secured debt retaining a ’B’ issue-level rating.
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