Summary
Howmet Aerospace Inc. (HWM), formerly Arconic Inc., filed an 8-K on October 21, 2019, detailing two significant events that occurred in October 2019. Firstly, the company fully repaid its 1.625% Convertible Senior Notes due 2019, amounting to approximately $402.5 million plus accrued interest. This repayment means that approximately 15 million shares of common stock previously attributable to these notes will no longer be included in the diluted share count, potentially impacting future earnings per share calculations. Secondly, the company announced the curtailment of operations at its Global Rolled Products plant in San Antonio, Texas. This facility generates roughly $50 million in annual revenue and its business will be integrated into other company mills to enhance operational effectiveness. The company anticipates incurring a restructuring charge of approximately $4 million in the fourth quarter of 2019 related to this closure.
Key Highlights
- 1Matured and repaid $402.5 million in 1.625% Convertible Senior Notes due 2019.
- 2No new shares were issued upon note maturity or conversion.
- 3Approximately 15 million shares will be removed from diluted share count calculations.
- 4Announced curtailment of San Antonio Global Rolled Products plant operations.
- 5The San Antonio plant generates approximately $50 million in annual revenue.
- 6Expected to record a $4 million restructuring charge in Q4 2019 for the San Antonio plant curtailment.
- 7The San Antonio business will be transferred to other mills to improve operational effectiveness.