Century Aluminum Company (CENX, Financial) filed Quarterly Report for the period ended 2010-03-31.
Century Aluminum Company has a market cap of $1.05 billion; its shares were traded at around $11.33 with and P/S ratio of 1.17. CENX is in the portfolios of Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Investors received $950 worth of 8.0% Notes for every $1,000 principal amount tendered of 7.5% Notes and did not receive a cash consent fee. In addition, these investors received the accrued interest for their 7.5% Notes, net of interest that has accrued on the 8.0% notes since the original issuance date.
Century s tax provision moved from a tax benefit to tax expense in 2010 due to improved earnings at our Grundartangi facility. In addition, the Icelandic statutory tax rate was increased to 18% in 2010 from 15% in 2009.
In December 2009, we completed an exchange offer and consent solicitation relating to our 7.5% Notes. We issued approximately $245 million 8.0% Notes in exchange for approximately $243 million of principal amount of our 7.5% Notes and received consents to modify certain provisions of the indenture governing the 7.5% Notes, including eliminating most restrictive covenants and certain events of default in the 7.5% Notes, for which we paid a consent payment consisting of $2.4 million of cash and $2.4 million of principal amount of 8.0% Notes. In January and March 2010, we completed additional exchanges of approximately $4.3 million of our 7.5% Notes for approximately $4.1 million of our 8.0% Notes. These investors received the accrued interest for their 7.5% Notes, net of interest that has accrued on the 8.0% Notes since the original issuance date. As of March 31, 2010, we had $2.6 million and $249.6 million of aggregate principal amount outstanding of the 7.5% Notes and 8.0% Notes, respectively.
We entered into primary aluminum put option contracts and collar contracts (combination of a put and a call option) that settle monthly from October 2009 through December 2011 based on LME prices. The put option contracts account for approximately 60% of Hawesville s current production level through 2010 and approximately 27% of their current production level for 2011 with a strike price around the facility s cash break-even price. These options were purchased to partially mitigate the risk of a future decline in aluminum prices, and we may consider purchasing additional put options or other hedging vehicles in the future.
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Century Aluminum Company has a market cap of $1.05 billion; its shares were traded at around $11.33 with and P/S ratio of 1.17. CENX is in the portfolios of Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
We completed debt-for-debt exchanges in January and March 2010. We exchanged approximately $4.1 million of 8.0% senior secured notes payable due May 15, 2014 (the “8.0% Notes”) for approximately $4.3 million of 7.5% senior unsecured notes payable due August 15, 2014 (the “7.5% Notes”). As of March 31, 2010, we had $2.6 million and $249.6 million of aggregate principal amount outstanding of the 7.5% Notes and 8.0% Notes, respectively.Investors received $950 worth of 8.0% Notes for every $1,000 principal amount tendered of 7.5% Notes and did not receive a cash consent fee. In addition, these investors received the accrued interest for their 7.5% Notes, net of interest that has accrued on the 8.0% notes since the original issuance date.
Century s tax provision moved from a tax benefit to tax expense in 2010 due to improved earnings at our Grundartangi facility. In addition, the Icelandic statutory tax rate was increased to 18% in 2010 from 15% in 2009.
In December 2009, we completed an exchange offer and consent solicitation relating to our 7.5% Notes. We issued approximately $245 million 8.0% Notes in exchange for approximately $243 million of principal amount of our 7.5% Notes and received consents to modify certain provisions of the indenture governing the 7.5% Notes, including eliminating most restrictive covenants and certain events of default in the 7.5% Notes, for which we paid a consent payment consisting of $2.4 million of cash and $2.4 million of principal amount of 8.0% Notes. In January and March 2010, we completed additional exchanges of approximately $4.3 million of our 7.5% Notes for approximately $4.1 million of our 8.0% Notes. These investors received the accrued interest for their 7.5% Notes, net of interest that has accrued on the 8.0% Notes since the original issuance date. As of March 31, 2010, we had $2.6 million and $249.6 million of aggregate principal amount outstanding of the 7.5% Notes and 8.0% Notes, respectively.
We entered into primary aluminum put option contracts and collar contracts (combination of a put and a call option) that settle monthly from October 2009 through December 2011 based on LME prices. The put option contracts account for approximately 60% of Hawesville s current production level through 2010 and approximately 27% of their current production level for 2011 with a strike price around the facility s cash break-even price. These options were purchased to partially mitigate the risk of a future decline in aluminum prices, and we may consider purchasing additional put options or other hedging vehicles in the future.
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