Foothill Ranch-based Kaiser Aluminum Corp. expects to raise $142 million in a debt offering with the proceeds set to go toward refinancing a credit line and buying back some of its stock.
The company, which shapes aluminum into custom pieces for the defense, aviation and auto industries, is selling $150 million worth of debt that can be converted to cash.
The offering was upped from an original $130 million and priced Tuesday.
After fees and discounts, Kaiser said it expects to take in $142 million. The company also could sell an additional $25 million worth of debt to cover extra demand.
Kaiser’s notes pay investors a 4.5% return. They can’t be converted into stock, the company said.
The company is using part of the proceeds to buy back about $45 million of its stock.
It’s also using the proceeds to strike a $200 million, four-year line of credit that’s replacing a prior $265 million credit line.
Kaiser has yearly sales of nearly $1 billion and a recent market value of $765 million.
