In December 2010, Novelis completed a $4.8 billion capital refinancing. The new structure improves our maturity profile from 2014/15 to 2017/20 and allows for return of capital to our parent company, Hindalco Industries Limited.
Proceeds from the December 2010 financing were used as follows:
- Refinanced approximately $2.5 billion of existing indebtedness
- Returned $1.7 billion of capital to our parent company
- Paid fees, expenses and other costs associated with the transaction, including tender premiums and make-whole costs
In December 2011, Novelis borrowed $225 million through a secured term loan to partially fund its acquisition of the minority interest in its Korean subsidiary. The new term loan was borrowed under, and will have the same terms as, the Company’s existing $1.5 billion term loan facility.
The company's new capital structure consists of:
- $2.5 billion of Senior Unsecured Notes
- $1.7 billion Senior Secured Term Loan
- $800 million Asset-Based Revolving Credit Facility
The benefits of our new capital structure allow Novelis to achieve greater flexibility to meet our strategic objectives.
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