Alcoa prices $1.25 billion in notes due 2021

Alcoa Inc. on Wednesday said it will sell $1.25 billion in debt, and use the proceeds to buy back notes that come due eight years earlier.

The Pittsburgh-based aluminum mining and processing company said it expects net proceeds of more than $1.24 billion from the sale of 5.40 percent notes due April 15, 2021.

The notes were priced at 99.848 percent, producing a yield of 5.42 percent, according to a Securities and Exchange Commission filing.

The sale is expected to close on or about April 21.

Alcoa plans to use the proceeds from the offering, together with cash it already holds, to buy back two older series of notes: all of its 5.375 percent block due in 2013 and up to $400 million worth of its outstanding 6 percent series due in 2013. The company launched tender offers for the older debt earlier Wednesday.

Citigroup Global Markets Inc., JP Morgan Securities and Morgan Stanley & Co. are acting as representatives of the underwriters and, along with Credit Suisse Securities LLC and RBS Securities Inc., as bookrunners of the offering.

Alcoa shares closed Wednesday down 15 cents at $16.55.