Loan & DebtMay 28, 2026, 04:18 PM
Howmet Aerospace Prepays JPY Term Loan, Expects $12M Annual Interest Savings
AI Summary
Howmet Aerospace completed the early prepayment of its JPY Term Loan Facility of ¥29,702 million (approximately $187 million) and entered into a cross-currency swap to convert $300 million of 6.750% Notes due 2028 into a JPY liability. These actions are expected to reduce annual interest expense by approximately $12 million. Additionally, the company reorganized its segments by moving a titanium alloy location from Engine Products to Engineered Structures, which had no impact on consolidated financial results. Howmet also filed a new shelf registration statement on Form S-3.
Key Highlights
- Prepaid JPY Term Loan Facility of ¥29,702 million (approx. $187 million) with cash on hand.
- Entered cross-currency swap for $300 million 6.750% Notes due 2028, converting to ¥47,760 million liability.
- Expects to reduce annual interest expense by approximately $12 million from these debt actions.
- Reorganized segments by moving a titanium alloy location from Engine Products to Engineered Structures.
- Segment reorganization had no impact on consolidated results, financial position, or cash flows.
- Engine Products segment reported $4,242 million in third-party sales for 2025.
- Engineered Structures segment reported $1,226 million in third-party sales for 2025.
- Filed a new shelf registration statement on Form S-3 for potential senior debt securities offers.
Price Impact
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