Century Aluminium Company CENX priced its earlier announced private offering of $250 million total principal amount of senior secured notes due 2025.
Per Century Aluminum, the new notes will be issued at 99.0% of face value. Notably, interest rates on the notes will be paid semi-annually on Jan 1 and Jul 1, starting from Jan 1, 2021. Interest will be paid out at the rate of 10.00% per annum in cash and 2.00% per annum in the form of additional notes or in cash at the company’s option.
The new notes are slated to mature on Jul 1, 2025, unless earlier redeemed or repurchased. Notably, the offering is slated to close on Jul 1, 2020, subject to customary closing conditions.
The company plans to use the net proceeds from the senior notes offering along with available cash on hand for the purchase of all of its $250-million outstanding principal amount of 7.50% senior secured notes slated to mature in 2021.
Century Aluminum’s shares have gained 0.3% in the past year against the industry’s 18.7% decline.
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Century Aluminum, on its first-quarter earnings call, stated that it does not expect a build of finished goods’ inventory in the future. The company is seeing meaningful reductions in the price of key inputs such as alumina and wholesale electric power. It also noted that it has adequate liquidity for the foreseeable future, even if commodity prices remain at current levels.
Century Aluminum Company Price and Consensus
Zacks Rank & Other Stocks to Consider
Century Aluminum currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked companies in the basic materials space are Agnico Eagle Mines Limited AEM, AngloGold Ashanti Limited AU and Franco-Nevada Corporation FNV.
Agnico Eagle currently sports a Zacks Rank #1 and has a projected earnings growth rate of 53.6% for 2020. The company’s shares have gained 15.1% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
AngloGold Ashanti has an expected earnings growth rate of 112.1% for 2020. The company’s shares have gained 43.6% in the past year. It presently flaunts a Zacks Rank #1.
Franco-Nevada has a projected earnings growth rate of 19.2% for the current year. The company’s shares have rallied around 55% in a year. It currently has a Zacks Rank #2 (Buy).
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