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CENX Prices Private Offering of 6.875% Senior Secured Notes

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Key Takeaways

  • CENX priced $400M of 6.875% senior secured notes due August 2032.
  • Net proceeds will refinance 7.50% notes due 2028 and repay credit facility borrowings.
  • CENX's obligations are backed by liens on substantially all its and the guarantors' assets.

Century Aluminum Company (CENX - Free Report) has announced the pricing of its earlier disclosed private offering of $400 million in total principal amount of 6.875% senior secured notes, due August 2032.

The notes will be issued at 100% of their total principal amount and will carry an annual interest rate of 6.875%, payable in cash on a semi-annual basis in arrears on Feb. 1 and Aug. 1 each year, starting on Feb. 1, 2026. The notes will mature on Aug. 1, 2032, unless redeemed or repurchased earlier. The transaction is expected to close on July 22, 2025, pending customary closing conditions.

These senior secured notes will be guaranteed by CENX’s U.S.-based restricted subsidiaries (with certain exceptions), and the company’s obligations will be backed by liens on substantially all its and the guarantors’ assets, excluding collateral securing its indebtedness under its credit agreement and other specifically excluded property.

The net proceeds from the offering of the Secured Notes will be used to refinance Century’s existing 7.50% Senior Secured Notes due 2028, repay borrowings under the company’s credit facilities and cover associated transaction fees and expenses.

Shares of Century Aluminum have risen 12.8% in the past year compared with the industry’s 22.8% growth.

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The company expects second-quarter 2025 adjusted EBITDA to be in the range of $80 million to $90 million, with increased Midwest regional premium and lower energy costs partly offset by planned major maintenance and seasonal labor expenses.

CENX’s Zacks Rank & Key Picks

CENX currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 43.3% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Agnico Eagle’s current-year earnings is pegged at $1.61 per share. AEM, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 12.3%. The company's shares have rallied 74.4% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 330% in the past year.

 

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