HWM · 8-K · 20260806PR091610
Outstanding Indebtedness
Howmet Aerospace Inc. · 2026-08-06 · Importance 64 · Surprise 42 · No source text
On May 22, 2026, Howmet repaid its $186 million Japanese Yen-denominated senior unsecured term loan using cash on hand. The company also entered into a cross-currency swap covering $300 million of 6.75% bonds due 2028, converting the debt synthetically into a Japanese Yen liability at a fixed rate of approximately 3.88%. The combined debt actions are expected to reduce annualized interest expense by $12 million. At June 30, 2026, long-term debt was $4.050 billion, short-term borrowings were $450 million, and cash and cash equivalents were $563 million.
Key facts
- Entered a cross-currency swap to synthetically convert $300 million aggregate principal of 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88% source
- Repaid Japanese Yen-denominated term loan facility on May 22, 2026 for approximately $186 million using cash on hand source
- Combined debt actions (repayment and cross-currency swap) will reduce annualized interest expense by $12 million source
- Long-term debt less amount due within one year as of June 30, 2026: $4,050 million; long-term debt due within one year: $1 million; short-term borrowings: $450 million source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | +0.4% | Combined debt actions (repayment and cross-currency swap) will reduce annualized interest expense by $12 million |
| liability | unclear | realized | — | Entered a cross-currency swap to synthetically convert $300 million aggregate principal of 6.75% Bonds due 2028 into a Japanese Yen… |
| liability | positive | realized | — | Repaid Japanese Yen-denominated term loan facility on May 22, 2026 for approximately $186 million using cash on hand |
| cash | negative | realized | — | Repaid Japanese Yen-denominated term loan facility on May 22, 2026 for approximately $186 million using cash on hand |
| liability | negative | realized | — | Long-term debt less amount due within one year as of June 30, 2026: $4,050 million; long-term debt due within one year: $1 million;… |
| liability | negative | realized | — | Long-term debt less amount due within one year as of June 30, 2026: $4,050 million; long-term debt due within one year: $1 million;… |
| liability | negative | realized | — | Long-term debt less amount due within one year as of June 30, 2026: $4,050 million; long-term debt due within one year: $1 million;… |