Constellium, a producer of aluminum products for the aerospace industry, is seeking a $350 million term loan B maturing in six years, according to a person with knowledge of the transaction.
Proceeds will be used to refinance existing debt, pay a dividend, add cash to the balance sheet and for general corporate purposes, said the person, who declined to be identified because the terms are private.
Lenders are being offered call protection of 103 cents during the first year, the person said. The premium to refinance the debt will drop to 102 cents more than face value in the second year and 1 cent the following year.
Deutsche Bank AG is arranging the financing for the Paris- based company and will host a lender meeting today, according to the person.
Constellium was formed in 2011 after Apollo Global Management LLC (APO:US), Fond Strategique D’Investissement and Rio Tinto Plc (RIO) acquired Alcan Engineered Products and renamed the company, according to the company’s website.
Melissa Mandel Kvitko, a spokeswoman for Apollo, declined to comment. Nicolas Brun, a spokesman for Constellium, didn’t immediately respond to an e-mail seeking comment.
So-called B loans are mainly bought by non-bank lenders such as collateralized loan obligations, mutual funds and hedge funds.
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