Key Announcements
- In December 2023, Howmet Aerospace drew approximately $400
million from its two term loan facilities. $200 million was drawn
from a U.S. dollar-denominated term loan facility (the “USD Term
Loan Facility”) and approximately $200 million was drawn from a
Japanese yen-denominated term loan facility (the “JPY Term Loan
Facility”).
- The Company entered into interest rate swaps to exchange the
floating interest rates of the term loan facilities into fixed
interest rates. The weighted average fixed interest rate is
approximately 3.9%.
- On December 28, 2023, the Company completed an early partial
redemption of its 5.125% Notes due October 2024 (the “2024 Notes”)
in the aggregate principal amount of $500 million for approximately
$506 million, including approximately $6 million of accrued
interest. Following this redemption, the aggregate outstanding
principal amount of the 2024 Notes is approximately $205
million.
- The combined impact of the term loans and the early partial
redemption of the 2024 Notes is expected to reduce annualized
interest expense by approximately $10 million.
- On December 15, 2023, S&P Global Ratings (“S&P”)
upgraded Howmet Aerospace’s Long-Term Issue Credit Rating to “BBB-”
from “BB+” and updated the rating outlook to stable. With this
upgrade, Howmet Aerospace is now rated as investment grade by two
of the three credit rating agencies.
Howmet Aerospace (NYSE: HWM) today reported the completion of
debt actions in the fourth quarter 2023.
As previously disclosed, on November 22, 2023, the Company
entered into two senior unsecured term loan agreements. One term
loan facility is U.S. dollar denominated. The second term loan
facility is Japanese yen denominated, and Howmet Aerospace’s
operations in Japan provide a natural foreign currency hedge
against the term loan facility. In December 2023, the Company drew
$200 million from the USD Term Loan Facility and approximately $200
million from the JPY Term Loan Facility. The term loans are
prepayable without penalties or premiums and mature in November
2026.
In December 2023, the Company also entered into interest rate
swaps to exchange the floating interest rates of the approximately
$400 million in term loans into fixed interest rates. With the
benefit of the Company’s credit rating upgrade by S&P, the
Company obtained a weighted average fixed interest rate of
approximately 3.9%. All of Howmet Aerospace’s outstanding long-term
debt continues to be unsecured and at fixed interest rates, which
will provide stability of interest expense into the future.
On December 28, 2023, the Company completed an early partial
redemption of its 2024 Notes in the aggregate principal amount of
$500 million. The 2024 Notes were redeemed with approximately $106
million of cash on hand and approximately $400 million from the
term loans at an aggregate redemption price of approximately $506
million, including accrued interest of approximately $6 million.
Following this redemption, the aggregate outstanding principal
amount of the 2024 Notes, which were inherited from Alcoa Inc. at
an original outstanding principal balance of $1.25 billion, is
approximately $205 million.
The combined impact of the term loans and the early partial
redemption of the 2024 Notes is expected to reduce annualized
interest expense by approximately $10 million.
S&P Rating Upgrade and Update Outlook to Stable
On December 15, 2023, S&P upgraded the Company’s Long-Term
Issue Credit Rating to “BBB-” from “BB+” and updated the rating
outlook to stable. With this upgrade, Howmet Aerospace is now rated
as investment grade by two of the three credit rating agencies,
reflecting the Company’s improved financial leverage and strong
cash generation.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh,
Pennsylvania, is a leading global provider of advanced engineered
solutions for the aerospace and transportation industries. The
Company’s primary businesses focus on jet engine components,
aerospace fastening systems, and airframe structural components
necessary for mission-critical performance and efficiency in
aerospace and defense applications, as well as forged aluminum
wheels for commercial transportation. With nearly 1,150 granted and
pending patents, the Company’s differentiated technologies enable
lighter, more fuel-efficient aircraft and commercial trucks to
operate with a lower carbon footprint. For more information, visit
www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding
Company developments and financial performance through its website
at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as "anticipates," "believes," "could," “envisions,”
"estimates," "expects," "forecasts," "goal," "guidance," "intends,"
"may," "outlook," "plans," "projects," "seeks," "sees," "should,"
"targets," "will," "would," or other words of similar meaning. All
statements that reflect Howmet Aerospace’s expectations,
assumptions or projections about the future, other than statements
of historical fact, are forward-looking statements, including,
without limitation, statements relating to any future debt actions.
These statements reflect beliefs and assumptions that are based on
Howmet Aerospace’s perception of historical trends, current
conditions and expected future developments, as well as other
factors Howmet Aerospace believes are appropriate in the
circumstances. Forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and
changes in circumstances that are difficult to predict, which could
cause actual results to differ materially from those indicated by
these statements. Such risks and uncertainties include, but are not
limited to: (a) deterioration in global economic and financial
market conditions generally; (b) unfavorable changes in the markets
served by Howmet Aerospace; (c) the impact of potential cyber
attacks and information technology or data security breaches; (d)
the loss of significant customers or adverse changes in customers’
business or financial conditions; (e) manufacturing difficulties or
other issues that impact product performance, quality or safety;
(f) inability of suppliers to meet obligations due to supply chain
disruptions or otherwise; (g) failure to attract and retain a
qualified workforce and key personnel; (h) the inability to achieve
revenue growth, cash generation, restructuring plans, cost
reductions, improvement in profitability, or strengthening of
competitiveness and operations anticipated or targeted; (i)
inability to meet increased demand, production targets or
commitments; (j) competition from new product offerings, disruptive
technologies or other developments; (k) geopolitical, economic, and
regulatory risks relating to Howmet Aerospace’s global operations,
including geopolitical and diplomatic tensions, instabilities,
conflicts and wars, as well as compliance with U.S. and foreign
trade and tax laws, sanctions, embargoes and other regulations; (l)
the outcome of contingencies, including legal proceedings,
government or regulatory investigations, and environmental
remediation; (m) failure to comply with government contracting
regulations; (n) adverse changes in discount rates or investment
returns on pension assets; and (o) the other risk factors
summarized in Howmet Aerospace’s Form 10-K for the year ended
December 31, 2022 and other reports filed with the U.S. Securities
and Exchange Commission. The statements in this release are made as
of the date of this release, even if subsequently made available by
Howmet Aerospace on its website or otherwise. Howmet Aerospace
disclaims any intention or obligation to update publicly any
forward-looking statements, whether in response to new information,
future events, or otherwise, except as required by applicable
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231228357106/en/
Investor Contact Paul T. Luther (412) 553-1950
Paul.Luther@howmet.com
Media Contact Rob Morrison (412) 553-2666
Rob.Morrison@howmet.com
Howmet Aerospace (NYSE:HWM)
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Howmet Aerospace (NYSE:HWM)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
