Novelis Strengthens Financial Position with Upsized Senior Notes Offering Set for 2030

Novelis Strengthens Financial Position

In a strategic move to bolster its financial framework, Novelis Inc., a leader in sustainable aluminum solutions, reveals that its subsidiary, Novelis Corporation, has successfully priced an upsized offering of senior notes. The new offering totals $750 million, reflecting an increase of $250 million from what was earlier projected. The senior notes are due in January 2030 and will feature a fixed interest rate of 6.875% per annum.

Novelis' decision to expand its note offering underscores its commitment to solid financial planning, providing a crucial support mechanism for its ambitious corporate strategies. The senior notes will be offered under an exempt private offering framework, thus not requiring registration as per the latest Securities Act guidelines, allowing Novelis to navigate the financial waters with greater flexibility.

This significant increase in offering size indicates strong investor confidence in Novelis as a premier player in the sustainable aluminum industry. The interest rate set at par value offers a lucrative opportunity for institutional buyers, positioning Novelis firmly within the financial market landscape.

The intended proceeds from this issuance amounting to $750 million are earmarked primarily for repaying existing borrowings approximating $738 million against Novelis' revolving credit facility. This strategic repayment aligns with the firm’s goal of enhancing liquidity, allowing it to better operationalize its resources while simultaneously bolstering its balance sheet for potential future investments.

Additionally, any surplus funds will be allocated for general corporate purposes, demonstrating Novelis' aim to maintain a balance between debt management and growth investments across its operational sectors. As the global leader in aluminum rolling and recycling, Novelis is dedicated to driving innovations that contribute to a low-carbon economy, targeting collaboration with suppliers and customers to realize a circular economy.

Novelis has witnessed significant growth, exemplified by $16.2 billion in net sales recorded in the fiscal year 2024. This performance reflects the strong demand for its aluminum products, especially within the automotive and beverage packaging industries. With this infusion of capital, the company is better positioned to meet increasing demands and advance its sustainability goals.

The offering is anticipated to close on January 13, 2025, contingent upon the fulfillment of standard closing conditions, thereby bringing Novelis one step closer to solidifying its financial base for the future. The company emphasizes that the notes and associated guarantees have not been, and will not be, registered under the Securities Act, underscoring its adherence to regulatory frameworks while navigating the complexities of financial offerings.

About Novelis

Novelis stands as a beacon of innovation in the aluminum industry, driven by a mission to foster a more sustainable world. From automotive to packaging, their products set the standard for low-carbon and resource-efficient solutions. With a focus on sustainability and recycling, Novelis aims to pioneer change and develop partnerships that facilitate progress toward a circular economy. As a wholly-owned subsidiary of Hindalco Industries, Novelis continues to explore avenues that not only enhance its market position but also contribute positively to the environment and the global economy.

For more detailed insights about Novelis' initiatives and commitments, visit novelis.com.

Forward-Looking Statements

As with any financial strategy, Novelis cautions stakeholders that these forward-looking statements involve inherent risks and uncertainties. The outcomes of this offering may vary significantly from current expectations due to a host of factors including market conditions and company performance. Nevertheless, Novelis remains proactive in its financial planning and growth strategies, reinforcing its reputation as an industry leader.