Century Aluminum finalises $400 million private note offering for capital structure optimisation
Century Aluminum Company, a prominent US producer of primary aluminium, announces that the private placement of USD 400 million of 6.875 per cent senior secured notes due August 2032 has closed, solidifying the company's capital structure and extending debt maturity. The offering is viewed as a compelling opportunity to solidify the company's capital structure given current market conditions.
Key financial details of the secured notes offering
The notes were issued at par, or 100 per cent of the total principal amount, and will pay interest semi-annually starting on February 1, 2026. The net proceeds are about USD 395 million after deducting purchaser discounts, commissions and expenses related to the offering.
Century has specified the purposes for the proceeds: to refinance its existing 7.50 per cent senior secured notes due 2028, reduce borrowings under existing credit facilities, and pay for transaction costs. The purpose of refinancing the notes is to lighten interest-bearing liabilities in the future and improve the company’s liquidity profile. The notes will be secured with liens on substantially all of the assets of Century and its domestic restricted subsidiaries, subject to certain collateral limitations covered by other agreements.
The offering, completed under the Rule 144A and Regulation S of the Securities Act of 1933, is made only to "qualified institutional buyers" and certain non-US persons. As stated by Century, "This press release is not an offer to sell or a solicitation of an offer to buy any of the Secured Notes." Century has restated that no sale can be completed where it would otherwise be unlawful.
Strengthening international operations and future guidance
Century Aluminium not only operates its key facilities in the US but also in Iceland, the Netherlands and Jamaica, reflecting its global footprint in the bauxite, alumina and primary aluminium value chain. Being the largest producer of primary aluminium in the US, this capital restructuring position allows Century to invest in operational efficiencies across all of these locations.
While the company’s stock has gained 12.8 per cent over the past year, it has underperformed the broader industry’s 22.8 per cent growth. Still, the management remains confident, projecting Q2 2025 adjusted EBITDA in the range of USD 80 million to USD 90 million, driven by lower energy costs and higher Midwest regional premiums, although partially offset by major maintenance and seasonal labour costs.
Strategic timing amid a volatile global metals landscape
This fundraiser comes at a time when global aluminium markets are in flux due to rising energy prices, trade dynamics and evolving consumer demand in the green energy and electric vehicle sectors. Century's initiative is part of a wider drive across global aluminium production to increase financial flexibility without losing operational sustainability.
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