Summary
Howmet Aerospace Inc. (HWM) filed an 8-K on April 24, 2020, reporting the successful closing of its underwritten public offering of $1.2 billion in aggregate principal amount of 6.875% Notes due 2025. This debt issuance was a critical financing condition for the company's previously announced tender offers for its existing notes. The new notes will mature on May 1, 2025, with semi-annual interest payments starting November 1, 2020. The company retains the option to redeem the notes prior to maturity under specific conditions, including a call premium before April 1, 2025, and at par thereafter. The filing also includes the necessary legal opinions and the underwriting agreement with J.P. Morgan Securities LLC.
Key Highlights
- 1Howmet Aerospace successfully closed a $1.2 billion offering of 6.875% Notes due 2025.
- 2The debt issuance was a condition for outstanding tender offers on existing notes.
- 3The new notes mature on May 1, 2025, with a coupon rate of 6.875% per annum.
- 4Interest payments are semi-annual, due on May 1 and November 1, starting November 1, 2020.
- 5The company has the option to redeem the notes, with specific terms for redemption before and after April 1, 2025.
- 6The offering was conducted under a shelf registration statement and included an underwriting agreement with J.P. Morgan Securities LLC.