Howmet Aerospace issued a $500 million 4.550% note due 2032, priced on November 3, 2025, with the offering scheduled to close on November 12, 2025.
The proceeds will be used to redeem approximately $625 million of its 5.90% notes due 2027, with the redemption set for December 3, 2025. The total redemption price, including accrued interest, is about $652 million.
The refinancing reduces annual interest expense by roughly $14 million, extending the maturity of the debt to 2032 and lowering the company’s cost of capital.
The offering is managed by Goldman Sachs, J.P. Morgan, and Morgan Stanley.
The transaction aligns with Howmet’s broader strategy to reduce leverage and return capital to shareholders, following a Q3 2025 earnings report that showed revenue of $2.09 billion, up 14% year‑over‑year, and earnings per share of $0.95, up from $0.81 in Q3 2024.
Segment performance in Q3 2025 was strong: Commercial Aerospace revenue rose 15%, Defense Aerospace 24%, and Industrial and Other 18%, while Commercial Transportation declined 3%.
Management highlighted robust demand in aerospace and defense markets and noted that the refinancing supports future investment and dividend increases.
In September 2025, S&P upgraded Howmet’s long‑term issuer rating from BBB to BBB+ citing improved liquidity and reduced leverage.
The company also repaid a $63 million term loan, repurchased $200 million of common stock, and raised its dividend by 20% in Q3 2025.
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