#USA #Atlanta #Senior Notes #corporate finance #Novelis

Novelis Completes Tender Offer for Senior Notes

On August 15, 2025, Novelis Inc., a major player in the global aluminum market, disclosed the successful results of its cash tender offer aimed at repurchasing its own 3.250% Senior Notes that are set to mature in November 2026. This strategic move reflects Novelis’s commitment to optimizing its debt structure and improving its financial standing.

Tender Offer Details

The tender offer, originally outlined in its Offer to Purchase dated August 11, 2025, garnered significant interest from investors. By the time the offer expired at 5:00 PM New York City time, an impressive $738,116,000 had been validly tendered by holders of the Notes. This amount accounts for 98.4% of the total outstanding principal of $750,000,000. The exceptional response may suggest strong investor confidence in Novelis's financial strategy and overall stability.

The remaining notes subject to guaranteed delivery procedures, amounting to $2,326,000, are also part of this process, and holders need to submit their notes by 5:00 PM, New York City time, on August 19, 2025.

Financial Implications

Holders who successfully tendered their Notes by the expiration time are set to receive $997.50 for each $1,000 principal amount of Notes. Furthermore, these holders will also enjoy accrued and unpaid interest on the Notes leading up to the expected Settlement Date of August 18, 2025. Notably, payments for notes delivered under guaranteed procedures will occur on the subsequent settlement date, expected to be August 20, 2025. The interest will cease on the Settlement Date for all Notes accepted for purchase.

This tender offer is not just a financial maneuver but part of a broader strategy by Novelis to enhance its liquidity and reduce interest expenses, enabling further investments in sustainable aluminum solutions.

Future Actions

According to the terms of the Offer to Purchase, any Notes not acquired through this tender offer will be redeemed in accordance with the governing indenture. This measure underscores Novelis's proactive approach towards financial management.

BNP Paribas Securities Corp. has been appointed as the Dealer Manager for the tender offer, providing additional resources for interested parties to gather information. Investors can reach out to BNP Paribas Securities Corp. should they have queries regarding the offer.

About Novelis

Novelis Inc. is dedicated to fostering a sustainable future through its business operations. As the leading producer of innovative aluminum products and the largest recycler of aluminum globally, Novelis aims to achieve a fully circular economy in its operations. The company is actively engaged with partners in various sectors, including aerospace and automotive, to supply low-carbon, sustainable aluminum solutions. In the fiscal year 2025, Novelis reported net sales of $17.1 billion, showcasing its robust market presence.

In conclusion, Novelis's recent tender offer reflects its strategic intent to bolster its financial resilience while paving the way for sustainable growth. As the company continues to invest in its innovative capabilities and environmental initiatives, it positions itself as a frontrunner in the global aluminum industry, prioritizing both profitability and sustainability.