Novelis Announces Completion of $185 Million Private Offering of Senior Unsecured Notes




    ATLANTA, Aug. 11 /CNW/ -- Novelis Inc., a subsidiary of Hindalco
Industries Limited (BSE: HINDALCO), announced today the completion of its
offering of $185.0 million aggregate principal amount of its senior notes due
2015 (the "Notes"), in a private offering that is exempt from the registration
requirements of the Securities Act of 1933, as amended (the "Securities Act").
 The Notes have an interest rate of 11.5% per annum and were issued at a price
equal to 98.022% of their face value.  The Notes are guaranteed on a senior
unsecured basis by certain of Novelis' subsidiaries.  The Notes are unsecured
senior obligations of Novelis and rank equally with all of Novelis' existing
and future unsecured senior indebtedness.
    

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20070809/NOVELISLOGO )

    
    Novelis estimates that the net proceeds from the offering were
approximately $178 million after deducting discounts and estimated offering
expenses. Novelis intends to use the net proceeds of the offering to repay
approximately $95.7 million currently outstanding under its $100 million
credit agreement with an affiliate of the Aditya Birla Group with the
remaining proceeds going to repay a portion of its asset-backed revolving line
of credit under its senior secured credit facilities.

    The Notes have not been registered under the Securities Act and may not
be offered or sold within the United States or to U.S. persons, except to
qualified institutional buyers in reliance on the exemption from registration
provided by Rule 144A under the Securities Act and to certain persons in
offshore transactions in reliance on Regulation S under the Securities Act.

    This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase the Notes and shall not constitute an
offer, solicitation or sale in any state or jurisdiction in which, or to any
person to whom, such an offer, solicitation or sale would be unlawful.  Any
offers of the Notes will be made only by means of a private offering circular.
    

    Forward-Looking Statements
    
    Statements made in this news release which describes Novelis' intentions,
expectations, beliefs or predictions may be forward-looking statements within
the meaning of securities laws. Forward-looking statements include statements
preceded by, followed by, or including the words "believes," "expects,"
"anticipates," "plans," "estimates," "projects," "forecasts," or similar
expressions. An example of such a statement in this news release includes the
estimated net proceeds from the offering. Novelis cautions that, by their
nature, forward-looking statements involve risk and uncertainty and that
Novelis' actual results could differ materially from those expressed or
implied in such statements. We do not intend, and we disclaim any obligation,
to update any forward-looking statements, whether as a result of new
information, future events or otherwise. Important risk factors regarding the
Company are included under the caption "Risk Factors" in our Annual Report on
Form 10-K for the fiscal year ended March 31, 2009 and our Quarterly Report on
Form 10-Q for the three months ended June 30, 2009, as filed with the SEC, and
may be discussed in subsequent filings with the U.S. Securities and Exchange
Commission. Further, the risk factors included in our Annual Report on Form
10-K for the fiscal year ended March 31, 2009 and our Quarterly Report on Form
10-Q for the three months ended June 30, 2009, are specifically incorporated
by reference into this news release.
    


    




For further information:

For further information: Media Relations, Charles Belbin,
+1-404-814-4260, charles.belbin@novelis.com, or Investor Relations, Randy
Miller, +1-404-814-4259, randy.miller@novelis.com, both of Novelis Inc. Web
Site: http://www.novelis.com

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