Bonds of Constellium NV climbed to the highest in more than four months after the company said a tie-up will reduce its spending plans in the U.S. by $280 million.
The Dutch aluminum-product maker’s 300 million euros ($330 million) of bonds due May 2021 rose 4 cents on the euro to 88 cents on Thursday, the highest since Oct. 26, according to data compiled by Bloomberg. Constellium signed a memorandum of understanding to expand a venture with UACJ Corp. to produce sheets of the lightweight metal for U.S. automakers, according to a statement on Thursday.
The partnership with Japan’s UACJ will allow Constellium to reduce its capital requirements to $340 million for the U.S. business, compared with $620 million announced in October. It will also enable the Dutch firm to expand its industrial footprint in North America, Chief Executive Officer Pierre Vareille said in the statement.
Constellium will separately post an impairment of $400 million on Wise Metals Group, an Alabama-based company acquired in 2014 for $1.4 billion, it said in another statement.