County Authority in Alabama Plans to Sell $100 Million of Waste Disposal Revenue Bonds for Novelis Plant

By Josh Beckerman

The Industrial Development Authority of Baldwin County plans to sell $100 million of solid waste disposal revenue bonds related to a Novelis project in Bay Minette, Ala.

Proceeds will be used to finance costs for waste disposal facilities at the aluminum manufacturing plant.

The sale is expected to consist of fixed-rate term bonds with a final maturity date in 2055, priced at 100%, according to a roadshow document posted on MuniOS. The initial mandatory tender date is expected to be June 1, 2032.

Pricing for the Series 2025B bonds is expected as early as Sept. 11. The expected settlement date in Sept. 23.

Novelis, a Hindalco Industries unit, said in 2022 that it would build a new low-carbon recycling and rolling plant in Bay Minette with an initial 600 kilotons of finished aluminum goods capacity a year.

In June, the Industrial Development Authority sold $400 million of solid waste disposal revenue bonds for the Novelis project.

The Series 2025B bonds will be exempt from federal income tax but subject to the alternative minimum tax.

BofA Securities is the underwriter.

The bonds are expected to have a BB rating from S&P Global Ratings, according to the roadshow document. Moody's rated the bonds B1 on Monday, which it said reflects a guarantee from Novelis.

Write to Josh Beckerman at josh.beckerman@wsj.com