Investors poured into Novelis' new $2 billion credit last week. One portfolio manager referred to the deal as a "mega blowout." Citigroup, Morgan Stanley and UBS are leading the financing. The credit comprises a five-year, $500 million revolver and a seven-year, $1.5 billion "B" loan. The term loan is split into a $550 million Canadian facility and a $950 million U.S. facility. Price talk is LIBOR plus 2 1/4% across all tranches, a banker said. The revolver is expected to be undrawn at closing. The credit backs Alcan's spinoff of its rolled products businesses into the new independent company. An Alcan spokeswoman declined comment. Bankers from the lead banks either did not return calls or declined comment.
Investors Pounce On Novelis Credit