Alcoa Subsidiary Plans $1 Bln Senior Notes Offering

(RTTNews) - Alcoa Corp. (AA), an industrial corp., Monday announced that it has proposed an offering of $1 billion aggregate principal amount of Senior Notes by Alumina Pty Ltd., a wholly-owned subsidiary of Alcoa.

Alumina plans to use the funds within the Alcoa group, including contributions to its subsidiary, Alcoa Nederland Holding B.V. (ANHBV).

ANHBV has issued $750 million in 5.500% Notes due in 2027 and $500 million in 6.125% Notes due in 2028.

The funds will be distributed through internal transactions, including repaying intercompany debt and issuing intercompany dividends.

ANHBV plans to use these funds, along with its cash reserves, to buy back all Existing 2027 Notes and up to $250 million of Existing 2028 Notes through the Tender Offers announced today.

If any funds remain after the offering, or if the Tender Offers are not completed, Alcoa plans to use them for general corporate purposes. This may include ANHBV redeeming the Existing 2027 and 2028 Notes. The offering is not dependent on the completion of the Tender Offers.

In the pre-market trading, Alcoa is 1.47% lesser at $33.74 on the New York Stock Exchange.