Aleris International announces launch of senior secured notes offering

Aleris International, Inc., the direct wholly owned subsidiary of Aleris Corporation, yesterday announced that it intends to commence a private offering of $450 million aggregate principal amount of senior secured notes due 2021 (the "Notes"). The Notes will be guaranteed by Aleris and certain of the company's subsidiaries. The Notes will be secured by a first-priority lien on substantially all of our and the guarantors' U.S. real property, equipment, intellectual property and stock of the issuer and the guarantors and other subsidiaries, but subject to permitted liens and excluding (i) inventory, accounts receivable, deposit accounts and related assets, which assets secure the company's $600.0 million asset backed revolving credit facility on a first-priority basis, and (ii) the assets associated with the company's Lewisport, Kentucky facility. There can be no assurance that the private offering of the Notes will be completed.

The company intends to use the net proceeds from the sale of the Notes, together with cash on hand, (i) to complete a cash tender offer for any and all of its outstanding $434.9 million aggregate principal amount of 7? per cent Senior Notes due 2018, including the payment of related fees and expenses, and (ii) to redeem and discharge any of its outstanding 2018 Notes that are not purchased in the Tender Offer, including the payment of related fees and expenses and any redemption premium.

The Notes will be offered in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act.

The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.