Howmet Aerospace Inc. Announces Pricing of Debt Offering

Rhea-AI Summary

Howmet Aerospace (NYSE: HWM) priced an underwritten public offering of $400,000,000 3.750% notes due 2028, $300,000,000 3.900% notes due 2029, and $500,000,000 4.750% notes due 2036, totaling $1.2 billion. The offering is expected to close on March 3, 2026, subject to customary conditions.

The company intends to use net proceeds, together with $600 million of borrowings and cash on hand, to finance the approximately $1.8 billion purchase price for the proposed acquisition of Consolidated Aerospace Manufacturing, LLC.

Positive

• $1.2 billion of notes issued across 2028–2036 maturities
• Proceeds plus $600 million borrowings to fund $1.8 billion acquisition
• Interest rates fixed between 3.75% and 4.75%, locking borrowing costs

Negative

• Adds $1.2 billion of long-term debt maturing 2028–2036
• Funding and acquisition close are subject to customary closing conditions, not finalized

Key Figures

2028 notes size: $400,000,000 2029 notes size: $300,000,000 2036 notes size: $500,000,000 +5 more

8 metrics

2028 notes size $400,000,000 3.750% notes due 2028

2029 notes size $300,000,000 3.900% notes due 2029

2036 notes size $500,000,000 4.750% notes due 2036

Total notes proceeds plan $1.2 billion Aggregate principal across 2028, 2029, 2036 notes

Additional borrowings $600 million Commercial paper or debt facilities for CAM purchase

CAM purchase price $1.8 billion Proposed cash acquisition of Consolidated Aerospace Manufacturing

Current share price $252.55 Pre‑news price on analysis date

52‑week range $105.04 – $256.70 52‑week low and high before this news

Market Reality Check

Price: $252.55 Vol: Volume 3,161,005 is rough...

normal vol

$252.55 Last Close

Volume Volume 3,161,005 is roughly in line with the 20-day average of 3,206,069. normal

Technical Price 252.55 is trading above the 200-day MA at 189.89, indicating a pre-existing uptrend.

Peers on Argus

HWM was up 2.21% while key peers were mixed: TDG +0.25%, NOC -0.20%, GD -1.28%, ...

HWM was up 2.21% while key peers were mixed: TDG +0.25%, NOC -0.20%, GD -1.28%, LHX +0.21%, LMT -0.52%, suggesting stock-specific factors rather than a broad sector move.

Previous Offering Reports

1 past event · Latest: Nov 03 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Nov 03	Debt offering pricing	Positive	-0.8%	Priced $500M 2032 notes to redeem higher‑coupon 2027 debt and cut interest.

Pattern Detected

The prior debt offering headline saw a small negative reaction despite balance-sheet focused use of proceeds.

Recent Company History

Recent news for HWM highlights strong operating momentum and active capital deployment. An earlier debt offering on Nov 3, 2025 funded redemption of higher‑coupon notes and saw a -0.83% move. Together with record FY2025 results, share repurchases, and the announced CAM acquisition of about $1.8 billion, this new financing step continues a pattern of using debt markets to optimize the balance sheet and support M&A.

Historical Comparison

-0.8% avg move · In the past 12 months, HWM had one prior debt offering headline with an average next‑day move of -0....

offering

-0.8%

Average Historical Move offering

In the past 12 months, HWM had one prior debt offering headline with an average next‑day move of -0.83%, indicating modest pressure around balance‑sheet financing news.

Historically, HWM used debt offerings to refinance higher‑cost notes; the latest offering extends this pattern to funding the CAM acquisition while maintaining unsecured senior notes as a core financing tool.

Market Pulse Summary

This announcement details how HWM plans to finance the proposed $1.8 billion CAM acquisition through...

Analysis

This announcement details how HWM plans to finance the proposed $1.8 billion CAM acquisition through a multi‑tranche $1.2 billion notes offering plus $600 million in additional borrowings and cash. It follows a year of strong operating results and prior balance‑sheet optimization via debt refinancing. Investors may focus on integration progress at CAM, overall leverage levels post‑deal, and whether acquisition returns track prior guidance and 2026 targets.

Key Terms

underwritten public offering, commercial paper program, prospectus supplement, shelf registration statement

4 terms

underwritten public offering financial

"it has priced its underwritten public offering of $400,000,000 aggregate..."

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

commercial paper program financial

"together with $600 million of borrowings under its commercial paper program..."

A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.

prospectus supplement regulatory

"a prospectus supplement and accompanying prospectus filed with the SEC..."

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

shelf registration statement regulatory

"offered pursuant to an effective shelf registration statement previously filed..."

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

AI-generated analysis. Not financial advice.

PITTSBURGH, Feb. 17, 2026 /PRNewswire/ -- Howmet Aerospace Inc. ("Howmet Aerospace" or the "Company") (NYSE: HWM) today announced that it has priced its underwritten public offering of $400,000,000 aggregate principal amount of 3.750% notes due 2028 (the "2028 Notes"), $300,000,000 aggregate principal amount of 3.900% notes due 2029 (the "2029 Notes") and $500,000,000 aggregate principal amount of 4.750% notes due 2036 (the "2036 Notes" and, together with the 2028 Notes and the 2029 Notes, the "Notes"). The offering is expected to close on March 3, 2026, subject to customary closing conditions.

The Company intends to use the net proceeds from the offering, together with $600 million of borrowings under its commercial paper program or debt facilities and cash on hand, to finance the approximately $1.8 billion purchase price for the proposed acquisition of Consolidated Aerospace Manufacturing, LLC (the "Proposed CAM Acquisition").

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. are acting as joint book-running managers for the offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale would be unlawful. The Notes are being offered pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"), and a prospectus supplement and accompanying prospectus filed with the SEC as part of the shelf registration statement. The offering is being made only by means of a preliminary prospectus supplement and the accompanying prospectus. Copies of these documents can be obtained by calling Citigroup Global Markets Inc toll-free at (800) 831-9146,Goldman Sachs & Co. LLC toll-free at (866) 471-2526, J.P. Morgan Securities LLC collect at (212) 834-4533, or SMBC Nikko Securities America, Inc. toll-free at (888) 868-6856.

About Howmet Aerospace

Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company's primary businesses focus on jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation.

Forward-Looking Statements

This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "envisions," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "poised," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the closing of the offering of the Notes, the use of net proceeds therefrom, including statements regarding the Proposed CAM Acquisition and the expected financing, benefits and timing of such planned acquisition. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and the resulting impacts on Howmet Aerospace's supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers' business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve improvement in or strengthening of financial performance, operations or competitiveness anticipated or targeted; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace's global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; (n) the ability to consummate and realize expected benefits of acquisitions, including the Proposed CAM Acquisition, on the anticipated time frame or at all; (o) the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement for the Proposed CAM Acquisition; (p) the impact of a delay in completing the Proposed CAM Acquisition or in integrating the Consolidated Aerospace Manufacturing, LLC business, which may be more difficult, time consuming or costly than expected; (q) potential unforeseen issues and legal liabilities relating to the Proposed CAM Acquisition; (r) operating costs, customer loss and business disruption (including, without limitation, difficulties in retaining or maintaining relationships with employees, customers or suppliers) that may be greater than expected following the Proposed CAM Acquisition or the public announcement of the Proposed CAM Acquisition; and (s) the other risk factors summarized in Howmet Aerospace's Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.

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SOURCE Howmet Aerospace Inc.

FAQ

What debt instruments did Howmet Aerospace (HWM) price on February 17, 2026?

Howmet priced three public note series totaling $1.2 billion. According to the company, the notes are $400M 3.750% due 2028, $300M 3.900% due 2029, and $500M 4.750% due 2036.

When will the HWM debt offering close and what is the planned use of proceeds?

The offering is expected to close on March 3, 2026, subject to conditions. According to the company, net proceeds plus $600M borrowings and cash will help finance a roughly $1.8B acquisition.

How much new debt is Howmet (HWM) taking on to finance the proposed CAM acquisition?

Howmet is issuing $1.2 billion of notes and plans $600 million additional borrowings. According to the company, these will be used with cash to fund the ~$1.8B purchase price.

What are the interest rates and maturities for Howmet Aerospace's February 2026 notes (HWM)?

The notes carry fixed rates of 3.75%, 3.90%, and 4.75%. According to the company, maturities are 2028, 2029, and 2036 respectively, matching short-, medium-, and long-term durations.

Who are the joint book-running managers for Howmet's (HWM) 2026 offering?

Citigroup, Goldman Sachs, J.P. Morgan, and SMBC Nikko are joint book-running managers. According to the company, investors can obtain prospectus copies from those firms for offering details.