v3.26.1
Debt and Credit Facility
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt and Credit Facility

5. Debt and Credit Facility

Senior Notes

At March 31, 2026 and December 31, 2025, we had outstanding fixed-rate unsecured Senior Notes with varying maturity dates. The stated interest rates and aggregate principal amounts of such Senior Notes were, respectively: (i) 4.50% and $550.0 million (“4.50% Senior Notes”) and (ii) 5.875% and $500.0 million (“5.875% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our Senior Notes:

 

 

 

 

 

 

 

Outstanding (in millions of dollars)

 

 

 

Issuance Date

 

Maturity

 

Effective Interest Rate

 

As of March 31, 2026

 

 

As of December 31, 2025

 

4.50% Senior Notes

 

May 2021

 

June 2031

 

4.7%

 

$

550.0

 

 

$

550.0

 

5.875% Senior Notes

 

November 2025

 

March 2034

 

6.1%

 

 

500.0

 

 

 

500.0

 

Total debt

 

 

 

 

 

 

 

 

1,050.0

 

 

 

1,050.0

 

Unamortized issuance costs

 

 

 

 

 

 

 

 

(12.2

)

 

 

(12.7

)

Total carrying amount

 

 

 

 

 

 

 

$

1,037.8

 

 

$

1,037.3

 

The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):

 

 

 

 

 

 

 

As of March 31, 2026

 

 

As of December 31, 2025

 

4.50% Senior Notes

 

 

 

 

 

$

519.6

 

 

$

531.4

 

5.875% Senior Notes

 

 

 

 

 

$

490.9

 

 

$

501.6

 

Revolving Credit Facility

In October 2019, we entered into a Revolving Credit Facility. Joining us as borrowers under the Revolving Credit Facility are four of our wholly owned domestic operating subsidiaries: (i) Kaiser Aluminum Investments Company; (ii) Kaiser Aluminum Fabricated Products, LLC; (iii) Kaiser Aluminum Washington, LLC; and (iv) Kaiser Aluminum Warrick, LLC.

As amended in October 2025, the Revolving Credit Facility is set to mature in October 2030 and contains a maximum commitment amount of $575.0 million (of which up to a maximum of $50.0 million may be utilized for letters of credit). The facility includes an accordion feature that allows for an increase in total revolving commitments of up to $200.0 million, plus an additional amount for a first-in last-out tranche, subject to lender approval and other customary conditions. The amount we can borrow under the Revolving Credit Facility is determined by the value of our eligible accounts receivable and inventory and certain other assets, which serve as collateral for the Revolving Credit Facility. Borrowings under the amended Revolving Credit Facility bear interest at a rate equal to either a base rate or the SOFR, plus, in each case, a specified variable percentage between 125 - 150 basis points for SOFR loans (or 25 - 50 basis points for base rate loans) determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility and, in certain instances, a fixed margin. Outstanding borrowings under the Revolving Credit Facility are reported within Long-term debt, net, on our Consolidated Balance Sheets. We had no outstanding borrowings under the Revolving Credit Facility as of March 31, 2026 and $22.3 million of outstanding borrowings under the Revolving Credit Facility as of December 31, 2025.

The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of March 31, 2026 (in millions of dollars):

 

Revolving Credit Facility borrowing commitment

 

$

575.0

 

Borrowing base availability

 

$

575.0

 

Less: Outstanding borrowings under Revolving Credit Facility

 

 

—

 

Less: Outstanding letters of credit under Revolving Credit Facility

 

 

(8.7

)

Remaining borrowing availability

 

$

566.3

 

Interest Expense

The following table presents interest expense relating to our Senior Notes and Revolving Credit Facility (in millions of dollars):

 

 

 

Quarter Ended March 31,

 

 

 

2026

 

 

2025

 

Senior Notes interest expense, including debt issuance cost amortization

 

$

14.0

 

 

$

12.4

 

Revolving Credit Facility interest expense, including commitment fees and finance cost amortization

 

 

0.6

 

 

 

0.6

 

Interest expense on finance lease liabilities

 

 

0.2

 

 

 

0.2

 

Interest expense capitalized as construction in progress

 

 

(0.4

)

 

 

(2.0

)

Total interest expense

 

$

14.4

 

 

$

11.2