US-based Novelis Inc, a subsidiary of Hindalco Industries, announced on Wednesday, January 8, its plan to offer $500 million in senior unsecured notes due 2030 through a private offering. The offering is exempt from registration under the Securities Act of 1933.
The senior unsecured notes will be guaranteed by Novelis and certain subsidiaries. The company intends to use the proceeds to repay $491 million in outstanding borrowings under its revolving credit facility. Any remaining funds will be allocated for general corporate purposes.
The notes and their guarantees will not be registered under the Securities Act or state securities laws and will only be sold to qualified institutional buyers under Rule 144A or in offshore transactions under Regulation S.
Novelis reported an 18% decline in net income for the second quarter of FY25, impacted by production disruptions at its Sierre plant in Switzerland caused by massive flooding. For the quarter ended September 30, 2024, the company posted a net income of $128 million, down from $156 million in the same period last year.
The decline includes $61 million in charges related to the Sierre plant disruptions, along with higher restructuring and impairment costs and lower operating performance. These were partially offset by favourable changes in metal price lag and unrealized derivatives. Excluding special items, net income stood at $179 million, a slight 1% decrease year-on-year.
The company’s adjusted EBITDA was $462 million for Q2 FY25, reflecting a 5% year-on-year decrease. This was attributed to less favourable metal benefits from a rapid rise in aluminium scrap prices, an unfavourable product mix, and a $25 million impact from the Sierre flooding.
Despite these challenges, Novelis remains focused on strengthening its financial position through strategic debt management and operational adjustments.
On January 09, 2025, Hindalco Industries share price traded 0.62% higher at ₹590.25, while the BSE benchmark Sensex is down 446.59 points to 77,701.01. Hindalco Industries’ share price reached a 52-week high of ₹772 on October 03, 2024, and a 52-week low of ₹496.80 on February 13, 2024. As per BSE, the total traded volume for the stock stood at 0.99 lakh shares with a turnover of ₹5.86 crore.
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Published on: Jan 9, 2025, 12:03 PM IST
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