Constellium Launches Proposed Sustainability-Linked Senior Notes Offering

PARIS, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) (“Constellium”) announced today the commencement of a proposed private offering of approximately $500 million of U.S. dollar denominated sustainability-linked senior unsecured notes due 2029 (the “Sustainability-Linked Notes”), subject to market and other conditions (the “Notes Offering”).

Constellium, as part of its sustainability strategy, has established sustainability performance targets to (1) reduce its Scope 1 and Scope 2 greenhouse gas (GHG) emissions intensity to equal or lower than 0.615 of CO₂ equivalent per metric ton of sales for the full year of 2025 and (2) increase its recycled aluminium input to equal to or higher than 685 thousand metric tons for the full year of 2026.

Constellium intends to use the net proceeds of the Notes Offering, together with cash on hand, to repurchase pursuant to a tender offer (the “Tender Offer”), and/or redeem, in accordance with the governing indenture, all of its outstanding 6.625% Senior Notes due 2025 (the “2025 Notes”), and to pay related fees and expenses. Concurrently with the commencement of the Tender Offer, the Company called for redemption, subject to certain conditions, all of the outstanding Notes (the “Redemption”). There can be no assurance that Constellium will successfully complete the Notes Offering, the Tender Offer or the Redemption on the terms described herein or at all.

The Company expects the redemption date for the 2025 Notes to occur on March 11, 2021 (the “Redemption Date”). The redemption price for the 2025 Notes is 101.656% of the aggregate principal amount of the outstanding 2025 Notes redeemed, plus accrued and unpaid interest, if any, to the Redemption Date. The Tender Offer and the Redemption are conditioned on the consummation of the Notes Offering.

Important Additional Information

The Sustainability-Linked Notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Sustainability-Linked Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.