Alcoa Corporation Announces Pricing of Debt Offering
Alcoa Corporation (NYSE:AA) announced the pricing of $500 million in 4.125% senior notes due 2029, backed by guarantees from Alcoa and its subsidiaries. The proceeds will fund a $500 million contribution to U.S. defined benefit pension plans, redeem outstanding 6.75% Senior Notes due 2024, and cover transaction expenses. The redemption of $750 million in 2024 Notes is scheduled for April 7, 2021, at a premium. The notes will be sold to qualified buyers under Rule 144A and Regulation S, and are not registered under the Securities Act.
- Issuing $500 million in senior notes may strengthen liquidity and financial stability.
- The redemption of higher-interest 6.75% Senior Notes may reduce interest expenses.
- Increased debt levels due to new senior notes issuance.
- Dependence on capital markets for funding pension obligations.
Alcoa Corporation (NYSE:AA) (“Alcoa”) announced today that Alcoa Nederland Holding B.V. (the “issuer”), a wholly-owned subsidiary of Alcoa, has priced an offering of
The issuer intends to use the net proceeds from the issuance of the notes being offered, together with cash on hand, to contribute approximately
The notes and related guarantees will be 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 will be 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 is the significance of Alcoa's $500 million senior notes offering on March 8, 2021?
How will Alcoa Corporation use the proceeds from the senior notes issued on March 8, 2021?
When is the redemption date for Alcoa's 6.75% Senior Notes due 2024?
What are the interest rates for Alcoa's newly issued senior notes?
Who is eligible to purchase Alcoa's senior notes issued on March 8, 2021?
