Hindalco Industries Arm Novelis Announces Senior Notes Offering
Novelis intends to use the net proceeds from the proposed offering to repay $491 million of outstanding borrowings under its revolving credit facility.
Novelis Inc., the US-based aluminium producer and subsidiary of Hindalco Industries Ltd., said on Wednesday that its indirect wholly owned subsidiary, Novelis Corp., is proposing to offer $500 million aggregate principal amount of its senior unsecured notes due 2030 in a private offering.
The notes will be guaranteed, jointly and severally, on a senior unsecured basis, by Novelis and by certain Novelis subsidiaries, according to an exchange filing.
Novelis intends to use the net proceeds from the proposed offering to repay $491 million of outstanding borrowings under its revolving credit facility and to use any remaining net proceeds to fund cash on its balance sheet for general corporate purposes.
Novelis Inc., is a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling.
The notes and associated guarantees are not registered and will not be registered under the Securities Act or any state securities laws. They will not be offered or sold within the US or to US persons, except to those reasonably considered qualified institutional buyers under the Rule 144A exemption of the Securities Act.
"We expect our performance in the three months ended March 31, 2025 to improve compared to the preliminary estimated results for the three months ended Dec. 31," the management said.
It was based on the management's review of recent business performance and expectations of a return to higher seasonal shipment volumes, a more favourable product mix, the benefit of new contract pricing, and favourable metal benefit, the filing stated.
Shares of Hindalco closed 0.37% higher at Rs 586.65 apiece on the NSE, compared to a 0.08% decline in the benchmark Nifty.
Twenty-two out of the 28 analysts tracking the company have a 'buy' rating on the stock, one recommends 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 27.5%.
