Noranda plans to repay floaters, term B loan using IPO proceeds

By Jennifer Chiou

New York, May 14 - Noranda Aluminum Holding Corp. intends to redeem or repurchase all $64.1 million of its senior floating-rate notes due 2014 using $70.3 million of net proceeds from its initial public offering, according to a 424B4 filing with the Securities and Exchange Commission.

The company is offering $80 million total of shares.

It plans to use the remaining $6.2 million of the net proceeds, combined with $90.1 million of proceeds from its aluminum hedges and $26.7 million of cash on hand, to repay $110 million of borrowings under its term B loan.

If underwriters exercise their over-allotment option in full, Noranda said it will receive $11.3 million in additional net proceeds, which will be used to offset $11.3 million of the repayment amount under the loan.

Any time on or after May 15, the company may call the floaters at par plus accrued interest.

Noranda is a Franklin, Tenn.-based producer of value-added primary aluminum products as well as high-quality rolled aluminum coils.

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