Alcoa gets $375.25 million of 6%, 5.375% notes in tender offer so far

By Devika Patel

Knoxville, Tenn., Aug. 9 - Alcoa Inc. said it received $188,053,000 of its 6% notes due 2012 and $187,194,000 of its 5.375% notes due 2013 by the early tender deadline of 5 p.m. ET on Aug. 6.

A cash tender offer for the $516,709,000 principal amount of 6% notes and $600 million principal amount of 5.375% notes and a tender offer for Alcoa's $583,467,000 principal amount of 6.5% notes due 2011 began July 26.

The company also said it was extending the early tender deadline to coincide with the offer deadline, 5 p.m. ET on Aug. 23.

The maximum amount spent on this offer will be $484,234,165, which is $750 million minus the total purchase price of the 6.5% notes accepted in the first offer, which expired Aug. 2.

The maximum tender amount will be applied first to purchase 6% notes. If any is leftover, Alcoa will apply the balance to purchase 5.375% notes, subject to a sublimit of $50 million.

For each $1,000 principal amount, holders received $1,048.75 for the 6.5% notes and will receive $1,042.50 for the 6% notes and 5.375% notes.

In addition, the company is offering an early tender premium of $20.00 per 6% or 5.375% note.

The company said payments for notes purchased will include accrued interest up to but excluding the settlement date.

The company will fund the tender with the proceeds of a new issue of senior debt securities together with cash on hand, as necessary. The tender is subject to the satisfaction of the financing condition.

The coordinating dealer managers are Banc of America Securities LLC (980 388-9217 or 888 292-0070) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The co-dealer managers are Deutsche Bank Securities Inc. (212 250-2955 or 866 627-0391) and UBS Securities LLC (203 719-4210 or 888 719-4210).

The depositary and information agent in all places other than Luxembourg is Global Bondholder Services Corp. (866 804-2200). The Luxembourg agent is Deutsche Bank Luxembourg SA (00352-421-22-639).

Alcoa is a Pittsburgh-based producer of primary aluminum, fabricated aluminum and alumina.

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