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Cases & Deals

May 30, 2018

King & Spalding Advises JW Aluminum Company on $285 Million Senior Secured Notes Offering

King & Spalding advised JW Aluminum Company on the sale of $285 million of senior secured notes to underwriters represented by Goldman Sachs & Co. LLC.  The notes were issued in a single tranche of $285 million of 10.25% Senior Secured Notes due 2025.

The Company plans to use the net proceeds from the offering to repay the Company’s $151.0 million secured term loan and to modernize and refresh the Company’s capacity at its Mount Holly operation, which will include the installation of proven, state-of-the-art equipment expected to result in substantial operating cost savings and additional production capacity. As a result of the offering, the Company has no outstanding debt maturing prior to 2023.

In connection with the offering, the Company, as Borrower, amended its existing $90,000,000 ABL credit facility with Regions Bank, as administrative agent.  In addition, the Company issued $50 million in preferred equity to its existing preferred equity holders.

The King & Spalding deal team assisting with the notes offering included Keith Townsend (ATL), Carrie Ratliff (ATL), Zack Davis (ATL) and Will Jordan (ATL). The King & Spalding deal team assisting with the financing included Todd Holleman (NY), Jennifer Daly (NY), Peter Williams (CHA), Brendan Gibson (ATL), Eugene Pevzner (NY) and Maggie McGill (CHA).  The King & Spalding deal team assisting with the equity offering included Scott Edwards (ATL).  Mike Taylor (DC) assisted with trade case matters.