Alcoa to price $1 billion eight-year senior notes this week

By Paul A. Harris

Portland, Ore., Sept. 20 – Alcoa Inc. plans to price $1 billion of eight-year senior notes by the end of the present week, according to a syndicate source.

The Rule 144A and Regulation S for life deal was scheduled to be marketed on a mid-morning conference call on Tuesday.

A New York investor lunch is scheduled to get underway at noon ET on Tuesday.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, MUFG, BBVA, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey Inc. and SMBC Nikko are the joint bookrunners.

Bradesco, Bank of New York, ANZ, PNC Capital Markets, Williams, Scotia Capital, RBC Capital Markets and Capital One are the co-managers.

The notes come with three years of call protection.

The issuing entity will be wholly owned subsidiary Alcoa Nederland Holding BV.

The New York-based aluminum company plans to use the proceeds to fund the separation of Alcoa Corp. from Arconic Inc.

Alcoa Corp. will retain the business units focused on bauxite, alumina, aluminum, cast products, North American packaged rolled products and energy.

Arconic will retain the engineered products and solutions, transportation and construction solutions and rolled products segments.

Following the separation, existing Alcoa Inc. shareholders will own about 80% of the common stock of Alcoa Corp., and the remainder will be owned by Arconic.

The separation is expected to be completed before the end of the year.

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