Novelis talks €500 million eight-year green notes to yield 3½%-3¾%

By Paul A. Harris

Portland, Ore., March 24 – Novelis Inc. talked its €500 million offering of eight-year senior green notes (B1/BB-) to yield 3½% to 3¾%, according to a market source.

Official talk comes inside of initial guidance in the high-3% to low-4% area.

Virtual roadshow meetings with management were scheduled to continue through Wednesday.

Physical bookrunner J.P. Morgan Securities LLC will bill and deliver. Deutsche Bank Securities Inc. is also a physical bookrunner.

Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., ING Financial Markets LLC and Standard Chartered Bank are the joint bookrunners.

ANZ Securities Inc., Axis Bank, DBS Bank Ltd., First Abu Dhabi Bank PJSC, MUFG, SMBC Nikko Securities America Inc., SG Americas Securities LLC and Wells Fargo Securities LLC are the co-managers.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon.

The issuer is a subsidiary Novelis Sheet Ingot GmbH. The notes will be guaranteed by Novelis Inc. and certain subsidiaries.

Proceeds will be used to repay a portion of the $1.8 billion of term loans under the company’s term loan facility.

The company will also allocate an amount equal to the net proceeds received to finance or refinance new or existing eligible green projects.

Novelis is an Atlanta-based aluminum rolled products producer and aluminum recycling company.

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