Hindalco Industries Limited, through its subsidiary Novelis Inc., announced a significant update regarding its latest debt issuance. Novelis Corporation, an indirect wholly owned subsidiary of Hindalco, has upsized and priced an offering of $750 million senior notes due January 2030.

This offering marks a $250 million increase from the previously announced amount, and the notes will bear an interest rate of 6.875% per annum.

Key Details of the Notes Offering

1. Aggregate Principal Amount and Interest Rate:
   The offering consists of $750 million senior notes, priced at par value, with an annual interest rate of 6.875%.

2. Upsizing of the Offering:
   The offering was increased by $250 million, reflecting strong investor demand and favorable market conditions.

3. Expected Closing Date:
   The offering is expected to close on January 13, 2025, subject to customary closing conditions.

4. Purpose of the Proceeds:
   Novelis intends to utilize the proceeds as follows:

   • Repayment of $738 million of outstanding borrowings under its revolving credit facility.
   • The remaining funds will be used for general corporate purposes, including cash reserves.

5. Guarantees:
   The notes will be guaranteed on a senior unsecured basis by Novelis Inc. and certain of its subsidiaries.

6. Placement Details:

   • The offering is conducted as a private placement under Rule 144A and Regulation S of the Securities Act of 1933.
   • The notes are exempt from registration under the Securities Act and are available to qualified institutional buyers and certain offshore investors.

Strategic Importance

This offering is a strategic move by Novelis to strengthen its financial flexibility while continuing its commitment to sustainable growth. By refinancing its revolving credit facility, Novelis aims to:

• Optimize its capital structure.
• Reduce financial leverage.
• Build cash reserves for potential future investments and operational requirements.

The interest rate of 6.875%, coupled with the strong demand that led to the upsizing, highlights investor confidence in Novelis' robust business model and market position.

About Novelis

Novelis Inc., a subsidiary of Hindalco Industries Limited, is a global leader in sustainable aluminum solutions and the largest recycler of aluminum in the world. Its commitment to low-carbon, circular economy initiatives aligns with global sustainability goals.

Key industries served by Novelis include:

• Automotive: Supplying lightweight aluminum solutions.
• Beverage Packaging: Providing recyclable aluminum for cans.
• Aerospace: Delivering advanced aluminum materials.
• Specialty Products: Offering custom aluminum solutions for various industries.

For fiscal year 2024, Novelis reported net sales of $16.2 billion, demonstrating its financial strength and market leadership.

Forward-Looking Statements

Novelis cautions that the offering of senior notes and the intended use of proceeds are subject to risks and uncertainties. Actual results may differ due to factors such as market conditions, regulatory approvals, and other unforeseen challenges.

As part of its communication, Novelis remains committed to providing updates on the progress of the offering and its financial strategy.

Conclusion

The $750 million senior notes offering by Novelis is a significant financial milestone that underscores its global leadership in aluminum solutions and commitment to financial stability.

By efficiently utilizing the proceeds to repay debt and bolster its cash reserves, Novelis is well-positioned to pursue growth opportunities, sustain its operational excellence, and deliver long-term value to its stakeholders.

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