Alcoa Corporation Announces Closing of Debt Offering

Rhea-AI Summary

Alcoa Corporation (NYSE:AA) has successfully closed a $500 million offering of 4.125% senior notes due 2029, guaranteed on a senior unsecured basis by Alcoa and its subsidiaries. The proceeds will fund a $500 million contribution to U.S. pension plans for employees and fully redeem the 6.75% Senior Notes due 2024. This offering enables the conditional redemption of the 2024 Notes and adheres to private placement regulations under the Securities Act. Alcoa has a rich history in aluminum production, relying on innovation and sustainability.

Positive

• Successful closure of $500 million notes offering.
• Proceeds used to fund employee pension plans and redeem debt.

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• None.

Alcoa Corporation (NYSE:AA) (“Alcoa”) announced today that Alcoa Nederland Holding B.V. (the “issuer”), a wholly-owned subsidiary of Alcoa, closed its offering of $500,000,000 aggregate principal amount of 4.125% senior notes due 2029 (the “notes”). The notes are guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries.

The issuer intends to use the net proceeds from the issuance of the notes, together with cash on hand, to contribute approximately $500 million to affiliate U.S. defined benefit pension plans applicable to salaried and hourly employees and to redeem in full its outstanding 6.75% Senior Notes due 2024 (the “2024 Notes”), and pay transaction-related fees and expenses. As disclosed in more detail in a concurrent filing on Form 8-K, the completion of the offering of the notes satisfies the condition precedent to the previously announced conditional redemption of the 2024 Notes on April 7, 2021.

The notes and related guarantees were sold in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-United States persons in offshore transactions in accordance with Regulation S under the Securities Act.

The notes and related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act.

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. Any offers of the notes or related guarantees were made only by means of a private offering memorandum.

About Alcoa

Alcoa is a global industry leader in bauxite, alumina, and aluminum products, and is built on a foundation of strong values and operating excellence dating back 135 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since developing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever we operate.

Forward-Looking Statements

This press 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,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa Corporation’s filings with the Securities and Exchange Commission. Alcoa Corporation disclaims any 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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FAQ

What was Alcoa's recent bond offering amount and interest rate?

Alcoa closed a $500 million offering of 4.125% senior notes due 2029.

How will Alcoa use the proceeds from the recent notes offering?

The proceeds will contribute $500 million to U.S. pension plans and redeem the 6.75% Senior Notes due 2024.

What is the ticker symbol for Alcoa Corporation?

The ticker symbol for Alcoa Corporation is AA.

When will Alcoa redeem its 6.75% Senior Notes?

Alcoa will redeem its 6.75% Senior Notes due 2024 on April 7, 2021.

Who guaranteed the notes in Alcoa's recent bond offering?

The notes are guaranteed on a senior unsecured basis by Alcoa and its subsidiaries.