Alcoa Corporation announced the pricing of a $2.6 billion senior notes offering by its wholly-owned subsidiaries. The proceeds, combined with cash on hand, are intended to finance the approximately $3.1 billion cash portion for the previously announced acquisition of bauxite, alumina, and aluminum assets from South32 Limited.
Key Details
- Offering Breakdown: The offering consists of two tranches: $1.5 billion of 6.625% Senior Notes due 2034 and $1.1 billion of 6.875% Senior Notes due 2036.
- Use of Proceeds: The net proceeds will provide permanent financing for the acquisition of South32 assets, replacing a senior unsecured 364-day bridge term loan facility.
- Timeline: The sale of the notes is expected to close on September 23, 2026, subject to customary closing conditions.