Alcoa in $1bn notes issue

Aluminium giant Alcoa today announced it was refinancing some of its debt through the issue of $US1 billion in notes due in August 2020.

The notes issue, with a yield of 6.15 per cent, will replace a number of existing notes on issue that are due between 2011 and 2013.

Alcoa said it expects to receive aggregate net proceeds from this offering of approximately $US993 million, after deducting underwriting discounts and estimated offering expenses. It will use the net proceeds from this offering together with cash on hand, if necessary, to fund the purchase price of its existing notes.

Banc of America Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and UBS Securities LLC are acting as book‐runners for the offering of notes.