Wise announces issuance of senior secured notes and new working capital revolver

December 2013 - Wise Metals Group LLC (“Wise” or the “Company”) today announced the closing of its new senior secured notes and a new working capital revolver. The Company’s private offering of $650 million 8.75% senior secured notes due 2018 (the “Notes”) are secured by certain of its assets. B of A Merrill Lynch, Wells Fargo Securities and Houlihan Lokey were underwriters of the Notes. At the same time, Wise put in place two new working capital facilities totaling $340 million led by GE Capital, Corporate Finance consisting of a $320M revolver for its rolled aluminum products business headquartered in Muscle Shoals, AL, and a $20M revolver for the Company’s recycling business headquartered in Clayton, NC. “These transactions enable Wise to capitalize on today’s favorable financial market conditions, lower our overall cost of borrowing, and extend our debt maturities beyond completion of our on-going capacity expansion,” said Monte Schaefer, Executive Vice President and Chief Financial Officer of Wise.

Wise used the net proceeds from the Notes to repay all of the existing term debt held by the Retirement Systems of Alabama (the “RSA”), redeem all of RSA’s preferred, nonconvertible membership interests, pay certain fees and expenses in connection with the Notes, and pay-down the working capital revolver. “Wise is grateful to the RSA for being our financial partner over the past decade and we are quite proud to continue to provide value to our customers and returns for our investor base,” said David F. D’Addario, Chairman and Chief Executive Officer of Wise. “We are excited about the future growth of our business and I believe that this new capital structure will allow Wise to generate significant cash flow as demand for our products increases.”

The Notes were sold in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended (the “Securities Act”). The Notes were sold in the United States only to qualified institutional buyers pursuant to Rule 144A and outside the United States to non-U.S. persons in compliance with Regulation S of the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such jurisdiction.


Current Issue


August 2014

Metals invests in Scouting
The Boy Scouts of America attracts dedicated fundraisers from the metals sphere.





White Papers

More White Papers >

Modern Metals on Twitter



twitter facebook linkedin rss