Allegheny technologies incorporated issues 5.875% $350 million senior notes due 2027

Allegheny technologies incorporated announced that it issued $350 million of new senior unsecured notes at a 5.875% interest rate due in december 2027. the company will use the proceeds of the 2027 notes, along with cash on hand, to redeem all its outstanding $500 million of 5.95% senior unsecured notes due january 2021 on december 23, 2019. combined, these actions reduce ati’s debt by $150 million and are expected to reduce annual interest expense by $9 million beginning in 2020. ati will recognize a debt extinguishment charge of approximately $21 million in the fourth quarter 2019 related to the 2021 notes redemption. additionally, the release of a portion of ati’s deferred tax valuation allowances in the fourth quarter 2019 is expected to be in the range of $30 to $40 million, approximately $5 million higher than the previously disclosed range. while ati’s projected 2020 reported income tax rate is expected to be approximately 23% to 25% of pretax results, the company’s cash tax requirements for 2020 will be similar to 2019, substantially lower than the reported 2020 tax rate due to the ongoing benefits in the u.s. of net operating loss carryforwards.
ATI Ratings Summary
ATI Quant Ranking