Noranda Aluminum executives said Monday they plan to issue $225 million in debt and are talking to banks about getting $60 million in additional loans. Most of the proceeds from the transactions are slated to go toward redeeming $275 million in floating notes that are scheduled to mature in 2015.
The transactions are being worked on under the umbrella of the company's Noranda Aluminum Acquisition Corp. entity. Officials said there is no guarantee they'll be able to complete the deals, which aim to issue unsecured notes that would mature in 2019. Franklin-based Noranda finished 2012 with more than $590 million in long-term debt on its books, up from $426 million a year earlier. The company early last year paid down about $75 million of its floating-rate debt, leaving it with $275 million of debt carrying an interest rate of about 4.7 percent.
Shares of Noranda (Ticker: NOR) are down more than 2 percent in mid-day trading at $5.10. Over the past three months, they've fallen almost 10 percent.
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