Alcoa Inc.'s Alcoa Nederland Holding BV unit priced its previously announced debt offering, which will consist of US$750 million worth of 6.75% senior notes due 2024 and US$500 million worth of 7.00% senior notes due 2026, the parent company said in a Sept. 22 statement.
The offering was announced two days earlier, along with a deal with a syndicate of lenders and issuers for up to US$1.5 billion in revolving loans.
Alcoa Upstream Corp. will initially guarantee the notes on a senior unsecured basis, but after the completion of Alcoa's planned separation into two stand-alone, publicly traded companies, the notes will be guaranteed by Alcoa Upstream and certain of its subsidiaries.
The sale of the notes to eligible institutional investors is expected to close Sept. 27, subject to customary closing conditions. Proceeds are earmarked for the transfer of certain assets from Alcoa to Alcoa Nederland Holding under Alcoa's business split and for general working capital.