JP Morgan runs Kaiser Aluminum USD225m notes issue

JP Morgan served as exclusive book-runner for US fabricated aluminium products maker Kaiser Aluminum Corp's private placement of USD225m (EUR176.1m) senior notes, Thomson Reuters' IFR service reported. The transaction was upsized by USD25m from the initially proposed amount. The company unveiled plans for the sale on 14 May and announced its upsizing and pricing on 18 May, without disclosing names of underwriters. The securities, which bear an 8.25% coupon, were priced at par, IFR said. The coupon will be paid on a semi-annual basis from 1 December 2012 until the maturity on 1 June 2020, the service added. The instruments will benefit from a cover provided by each of Kaiser Aluminum's US units that is a borrower or guarantor under its revolver, the company said.

Kaiser Aluminum noted that it would deploy the fresh capital for general corporate operations, such as acquisitions. The deal is seen to be wrapped up on 23 May 2012, the company said. Rating agencies Moody's and Standard and Poor's have given "junk" status to the issue. Specifically, Moody's assigned the notes a Ba3 rating, which indicates substantial credit risk, and Standard and Poor's rated them at BB-, which implies lower short-term vulnerability to unfavourable circumstances relative to lower ratings but also major ongoing uncertainties.