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.