Alcoa Corporation Announces Pricing of Debt Offering
Alcoa (NYSE:AA) has announced that its wholly-owned subsidiary, Alumina Pty , has priced a $1 billion senior notes offering. The notes will be guaranteed by Alcoa and certain subsidiaries, with the sale expected to complete on March 17, 2025.
The funds will be deployed within the Alcoa group, primarily to finance tender offers for existing notes: the entire $750 million of 5.500% Notes due 2027 and up to $250 million of 6.125% Notes due 2028. Any remaining proceeds will be used for general corporate purposes, potentially including the redemption of existing notes.
The notes will be sold privately to qualified institutional buyers under Rule 144A and to non-US persons under Regulation S of the Securities Act.
Alcoa (NYSE:AA) ha annunciato che la sua controllata interamente posseduta, Alumina Pty, ha fissato il prezzo per un emissione di note senior da 1 miliardo di dollari. Le note saranno garantite da Alcoa e da alcune sussidiarie, con la vendita prevista per il 17 marzo 2025.
I fondi saranno utilizzati all'interno del gruppo Alcoa, principalmente per finanziare offerte di acquisto per note esistenti: l'intero importo di 750 milioni di dollari di note al 5,500% in scadenza nel 2027 e fino a 250 milioni di dollari di note al 6,125% in scadenza nel 2028. Eventuali proventi rimanenti saranno utilizzati per scopi aziendali generali, potenzialmente inclusa la rimborso di note esistenti.
Le note saranno vendute privatamente a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S del Securities Act.
Alcoa (NYSE:AA) ha anunciado que su filial de propiedad total, Alumina Pty, ha fijado el precio de una emisión de notas senior de 1 mil millones de dólares. Las notas estarán garantizadas por Alcoa y ciertas subsidiarias, con la venta prevista para completarse el 17 de marzo de 2025.
Los fondos se utilizarán dentro del grupo Alcoa, principalmente para financiar ofertas de compra de notas existentes: el total de 750 millones de dólares de notas al 5.500% que vencen en 2027 y hasta 250 millones de dólares de notas al 6.125% que vencen en 2028. Cualquier ingreso restante se utilizará para fines corporativos generales, incluyendo potencialmente el rescate de notas existentes.
Las notas se venderán de forma privada a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
알코아 (NYSE:AA)는 전액 출자 자회사인 알루미나 Pty가 10억 달러 규모의 선순위 채권 발행 가격을 책정했다고 발표했습니다. 이 채권은 알코아와 몇몇 자회사에 의해 보증되며, 판매는 2025년 3월 17일에 완료될 것으로 예상됩니다.
자금은 알코아 그룹 내에서 사용되며, 주로 기존 채권에 대한 입찰 제안을 재정 지원하는 데 사용됩니다: 2027년 만기 5.500% 채권 7억 5천만 달러 전액 및 2028년 만기 6.125% 채권 최대 2억 5천만 달러. 남은 수익은 기존 채권의 상환을 포함한 일반 기업 목적에 사용될 수 있습니다.
채권은 규칙 144A에 따라 자격을 갖춘 기관 투자자에게 비공식적으로 판매되며, 증권법의 규정 S에 따라 비미국인에게도 판매됩니다.
Alcoa (NYSE:AA) a annoncé que sa filiale entièrement détenue, Alumina Pty, a fixé le prix d'une émission d'obligations senior de 1 milliard de dollars. Les obligations seront garanties par Alcoa et certaines filiales, la vente devant être finalisée le 17 mars 2025.
Les fonds seront déployés au sein du groupe Alcoa, principalement pour financer des offres de rachat d'obligations existantes : l'intégralité des 750 millions de dollars d'obligations à 5,500% arrivant à échéance en 2027 et jusqu'à 250 millions de dollars d'obligations à 6,125% arrivant à échéance en 2028. Les produits restants seront utilisés à des fins générales d'entreprise, y compris potentiellement le remboursement d'obligations existantes.
Les obligations seront vendues en privé à des acheteurs institutionnels qualifiés en vertu de la règle 144A et à des personnes non américaines en vertu de la réglementation S de la loi sur les valeurs mobilières.
Alcoa (NYSE:AA) hat bekannt gegeben, dass ihre hundertprozentige Tochtergesellschaft, Alumina Pty, eine Emission von Senior Notes im Wert von 1 Milliarde Dollar bepreist hat. Die Notes werden von Alcoa und bestimmten Tochtergesellschaften garantiert, wobei der Verkauf voraussichtlich am 17. März 2025 abgeschlossen sein wird.
Die Mittel werden innerhalb der Alcoa-Gruppe eingesetzt, hauptsächlich zur Finanzierung von Rückkaufangeboten für bestehende Notes: die gesamten 750 Millionen Dollar von 5,500% Notes, die 2027 fällig werden, und bis zu 250 Millionen Dollar von 6,125% Notes, die 2028 fällig werden. Etwaige verbleibende Erlöse werden für allgemeine Unternehmenszwecke verwendet, möglicherweise einschließlich der Rückzahlung bestehender Notes.
Die Notes werden privat an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß der Regelung S des Wertpapiergesetzes verkauft.
- Refinancing of existing debt indicates proactive debt management
- No immediate increase in total debt burden as proceeds mainly target existing notes
- Continued reliance on debt financing
- Potential increase in interest expenses depending on new notes' terms
Insights
Alcoa's
This appears to be a standard liability management exercise rather than expansion funding. Without pricing details on the new issuance, we can't determine whether this refinancing will improve Alcoa's interest expense profile - the financial benefit hinges entirely on the new debt's interest rate compared to the notes being retired.
The structure - using an Australian subsidiary (Alumina Pty ) as issuer with parent guarantees - likely offers tax or structural advantages within Alcoa's corporate framework. The cash tender approach rather than simply calling existing notes suggests Alcoa may be seeking to capture any trading discount on outstanding debt or providing flexibility if participation falls short.
If applied entirely to refinancing, this transaction doesn't increase Alcoa's net debt position but reshapes its maturity profile. The inclusion of "general corporate purposes" for any remaining proceeds maintains flexibility, particularly if tender offers aren't fully subscribed.
In the current interest rate environment, this refinancing demonstrates proactive debt management, potentially addressing near-term maturities before they become pressing concerns. Without knowing the new notes' terms, investors should view this as standard financial management rather than a significant shift in Alcoa's capital structure strategy.
The Issuer intends to deploy the funds within the Alcoa group, including funding contributions to Alcoa Nederland Holding B.V. (“ANHBV”), a wholly-owned subsidiary of Alcoa and the issuer of the outstanding
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-
This press release does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell the notes and related guarantees, the Existing 2027 Notes, the Existing 2028 Notes or any other security and there will be no offer, solicitation, purchase or sale in any state or jurisdiction in which, or to any persons to whom, such an offer, solicitation, purchase or sale would be unlawful. Any offers of the notes and related guarantees will be made only by means of a private offering memorandum. The Tender Offers are being made only by means of the relevant offer to purchase and notice of guaranteed delivery, as applicable.
About Alcoa
Alcoa is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. Our purpose is to turn raw potential into real progress, underpinned by Alcoa Values that encompass integrity, operating excellence, care for people and courageous leadership. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to improved safety, sustainability, efficiency, and stronger communities wherever we operate.
Forward-Looking Statements
This press release contains statements that relate to future events and expectations, including those relating to the proposed notes offering, the intended use of the net proceeds from the issuance of the notes and the Tender Offers, 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 “aims,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “potential,” “plans,” “projects,” “reach,” “seeks,” “sees,” “should,” “strive,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa 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 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’s filings with the Securities and Exchange Commission. Alcoa 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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Investor Contact
Yolande Doctor
412-992-5450
Yolande.B.Doctor@alcoa.com
Media Contact
Courtney Boone
412-527-9792
Courtney.Boone@alcoa.com
Source: Alcoa
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