Alcoa Corporation has announced a proposed private offering of $2.6 billion in aggregate principal amount of senior notes to finance its previously announced acquisition of assets from South32 Limited. The offering consists of two tranches of notes, due in 2034 and 2036, to be issued by wholly-owned subsidiaries.
Key Details
- Offering Size & Structure: The proposed offering is for $2.6 billion in aggregate principal, consisting of senior notes due 2034 and senior notes due 2036.
- Use of Proceeds: Net proceeds, combined with cash on hand, will fund the approximately $3.1 billion cash portion for the acquisition of South32's interests in certain bauxite, alumina, and aluminum smelter operations.
- Financing Strategy: This notes offering is intended to provide permanent financing for the acquisition and will replace the company's senior unsecured 364-day bridge term loan facility upon completion of the offering.