Summary
ATI Inc. (ATI) announced on November 22, 2019, the successful completion of its offering and sale of $350.0 million in aggregate principal amount of 5.875% Senior Notes due 2027. This offering, made under the company's shelf registration statement, was executed through a Sixth Supplemental Indenture to an existing Indenture with The Bank of New York Mellon as trustee. The issuance of these notes constitutes a material definitive agreement and creates a direct financial obligation for the company. These senior notes will accrue interest at a fixed rate of 5.875% per annum, payable semi-annually, with a maturity date of December 1, 2027. The company retains the option to redeem the notes, with specific terms and premium considerations outlined for redemptions before December 1, 2022, and on or after that date. A special provision allows for up to 35% of the notes to be redeemed with equity offering proceeds before December 1, 2022, under certain conditions. The filing also references the underwriting agreement with BofA Securities, Inc. and Citigroup Global Markets Inc., and includes legal opinions regarding the validity of the notes.
Key Highlights
- 1ATI Inc. successfully issued $350 million in 5.875% Senior Notes due 2027.
- 2The notes will mature on December 1, 2027.
- 3The fixed annual interest rate on the notes is 5.875%, payable semi-annually.
- 4The company has the option to redeem the notes, with call provisions detailed for early redemption.
- 5A portion of the notes (up to 35%) can be redeemed using proceeds from equity offerings prior to December 1, 2022.
- 6The issuance represents a material definitive agreement and a direct financial obligation for ATI Inc.
- 7The offering was made under the company's existing shelf registration statement and related indenture agreements.