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CHICAGO - Century Aluminum Company (NASDAQ:CENX), a $1.87 billion market cap aluminum producer with a solid financial health score according to InvestingPro, announced Wednesday a proposed private offering of $400 million in senior secured notes due July 2032, subject to market conditions.
The company intends to use the proceeds to refinance its 7.50% Senior Secured Notes due 2028, repay borrowings under its credit facilities, and cover related fees and expenses, according to a press release statement. With a current ratio of 1.84 and total debt to capital ratio of 21%, the company maintains a healthy balance sheet structure.
The interest rate and other terms of the new notes will be determined at pricing. The securities will be offered exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to certain non-U.S. persons outside the United States under Regulation S.
Century Aluminum noted that the notes have not been registered under the Securities Act or state securities laws and cannot be offered or sold in the United States without registration or an applicable exemption.
As the largest primary aluminum producer in the United States, Century also operates facilities in Iceland, the Netherlands, and Jamaica.
The company cautioned that there is no guarantee the transaction will be completed as described in the announcement.
In other recent news, Century Aluminum Company reported its first-quarter 2025 earnings, which showed a significant miss in earnings per share (EPS), coming in at $0.36 compared to the expected $0.61. However, the company exceeded revenue expectations, reporting $634 million against a forecast of $577.2 million. The company also announced plans to construct a new aluminum smelter in the U.S., the first in five decades, following the U.S. government’s decision to double tariffs on imported primary aluminum. This expansion is expected to significantly increase domestic production capacity.
S&P Global Ratings has revised Century Aluminum’s outlook to positive from stable, citing improved credit metrics and profitability. The company’s credit rating was affirmed at ’B-’. Century Aluminum’s profitability has benefited from lower production costs and strong price realizations, with expectations of continued earnings momentum. The company has also completed the Iceland cast house project, allowing it to expand into the premium-priced low-carbon billets market.
Additionally, Century Aluminum has reduced its net debt by $55 million and increased liquidity to $339 million. The company plans to use excess cash flow for further debt reduction and expects to receive approximately $60 million in tax credits in the upcoming quarter. These developments are part of Century Aluminum’s broader strategy to strengthen its financial position and enhance its operational capabilities.
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