Howmet Aerospace Inc. announced on August 22, 2024, the issuance of $500 million aggregate principal amount of 4.850% Notes due October 2031. The company synthetically converted these notes into a Euro liability of approximately €458 million with a fixed annual interest rate of 3.72% through a cross-currency swap.
Following this, on August 23, 2024, Howmet Aerospace redeemed the remaining outstanding principal amount of $577 million of its 6.875% Notes due May 2025. The redemption was funded using proceeds from the newly issued 2031 Notes combined with cash on hand, at an aggregate redemption price of approximately $594 million, including accrued interest of about $12 million.
These combined debt actions through the third quarter of 2024 are projected to reduce annualized interest expense by approximately $33 million. This refinancing strategy extends the company's debt maturity profile, with its next debt maturity now scheduled for November 2026, enhancing financial stability.
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