Century Aluminum prices $400 million senior secured notes offering

CHICAGO - Century Aluminum Company (NASDAQ:CENX), currently valued at $1.82 billion in market capitalization, announced Wednesday it has priced a private offering of $400 million in senior secured notes due August 2032 at an interest rate of 6.875% per annum. According to InvestingPro data, the company maintains a GOOD financial health score and has been profitable over the last twelve months.

The notes will be issued at 100% of their aggregate principal amount and will pay interest semi-annually beginning February 1, 2026. They will mature on August 1, 2032, unless earlier redeemed or repurchased. With a current debt-to-equity ratio of 0.66 and total debt of $482.6 million, this refinancing comes at a time when InvestingPro analysis suggests the stock is currently undervalued.

The offering is expected to close on July 22, 2025, subject to customary closing conditions. The notes will be guaranteed by Century’s domestic restricted subsidiaries and secured by liens on substantially all assets of the company and its subsidiary guarantors, with certain exceptions.

Century plans to use the net proceeds to refinance its 7.50% Senior Secured Notes due 2028, repay borrowings under its credit facilities, and cover transaction-related fees and expenses.

The notes are being offered 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. They have not been registered under the Securities Act or state securities laws.

Century Aluminum, which describes itself as the largest primary aluminum producer in the United States, also operates facilities in Iceland, the Netherlands, and Jamaica. The company has demonstrated solid performance with revenue growth of 11.4% in the last twelve months and analysts expect profitability to continue this year. Get deeper insights into Century Aluminum’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a company press release statement.

In other recent news, Century Aluminum Company reported its first-quarter 2025 earnings, revealing a significant miss in earnings per share (EPS), which came in at $0.36 against the forecasted $0.61. Despite this, the company exceeded revenue expectations, reporting $634 million compared to the anticipated $577.2 million. The company also announced a proposed private offering of $400 million in senior secured notes, intending to use the proceeds for refinancing and debt repayment. Meanwhile, S&P Global Ratings has revised Century Aluminum’s outlook to positive from stable, highlighting improved credit metrics and profitability, with the company’s credit rating affirmed at ’B-’.

Additionally, Century Aluminum has welcomed the U.S. government’s decision to double tariffs on imported primary aluminum, planning to construct the first new U.S. aluminum smelter in five decades, which could double the country’s production capacity. The company has also completed the Iceland cast house project, allowing expansion into the premium-priced low-carbon billets market. Century Aluminum’s recent acquisition of a 55% stake in Jamalco has contributed to its profitability by reducing exposure to volatile alumina prices. Furthermore, the company plans to use excess cash flows to reduce its net debt, aiming for a target of about $300 million. These developments are being closely monitored by investors and market analysts for their potential impact on the company’s future performance.

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