Noranda Aluminum Holding Corporation (NYSE: NOR) announced today that its Board of Directors has approved plans to pursue a debt refinancing of the Company’s senior secured credit facility, including both its term loan and revolving credit facility. The refinancing is expected to result in two new senior secured credit facilities in an aggregate amount of approximately $550 million, comprised of a term loan in an amount of approximately $300 million, and an asset-based revolving credit facility in an amount of approximately $250 million, which is anticipated to be undrawn at closing. The proceeds of the refinancing are anticipated to be used for repayment of amounts outstanding under Noranda’s Term Loan B, a tender offer for a portion of Noranda’s outstanding Senior Floating Rate Notes due 2015, the issuance of a special dividend in the amount of approximately $1.25 per share and general corporate purposes. The timing and size of any potential refinancing and the use of proceeds thereof, including the size and timing of any dividend, are subject to market and other conditions, and Noranda makes no assurance that such actions, including any special dividend, will take place at any specific time, or at all.
“Our plan to opportunistically pursue a refinancing of our senior secured credit facility and extend our debt maturity profile is supported by both our healthy balance sheet and strength in the global capital markets,” said Layle K. (Kip) Smith, Noranda’s President and Chief Executive Officer. “We believe that this refinancing is consistent with our model of prudently providing stockholders meaningful cash returns and driving stockholder value creation through business reinvestment and strategic growth.”
About the Company
Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products, as well as high quality rolled aluminum coils. Noranda is a public company controlled by affiliates of its private equity sponsor.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV