Howmet Aerospace( NYSE HWM) moment reported the completion of debt conduct in the fourth quarter of 2023. As preliminarily bared, on November 22, 2023, the Company entered into two elderly relaxed term loan agreements. One term loan installation is U.S. bone
nominated. The alternate term loan installation is Japanese yearning nominated, and Howmet Aerospace’s operations in Japan give a natural foreign currency barricade against the term loan installation. In December 2023, the Company drew 200 million from the USD Term Loan installation and roughly 200 million from the JPY Term Loan installation. The term loans are prepayable without penalties or decorations and develop in November 2026. In December 2023, the Company also entered into interest rate barters to change the floating interest rates of the roughly 400 million in term loans into fixed interest rates. With the benefit of the Company’s credit standing upgrade by S&P, the Company attained a weighted average fixed interest rate of roughly 3.9.
All of Howmet Aerospace’s outstanding long-term debt continues to be relaxed and at fixed interest rates, which will give stability to interest expenditure into the future. On December 28, 2023, the Company completed an early partial redemption of its 2024 Notes in the aggregate star quantum of$ 500 million. The 2024 Notes were redeemed with roughly$ 106 million of cash on hand and roughly$ 400 million from the term loans at an aggregate redemption price of roughly$ 506 million, including accrued interest of roughly$ 6 million. Following this redemption, the total outstanding top quantum of the 2024 Notes, which were inherited from AlcoaInc. at an original outstanding top balance of$1.25 billion is roughly$ 205 million. The concerted impact of the term loans and the early partial redemption of the 2024 Notes is anticipated to reduce annualized interest expenditure by roughly$ 10 million. S&P Rating Upgrade and Update Outlook to Stable On December 15, 2023, S&P upgraded the Company’s Long-Term Issue Credit Rating to “ BBB- ” from “ BB ” and streamlined the standing outlook to stable. With this upgrade, Howmet Aerospace is now rated as investment grade by two of the three credit standing agencies, reflecting the Company’s advanced fiscal influence and strong cash generation.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s primary businesses focus on jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation. With nearly 1,150 granted and pending patents, the Company’s differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
