Alcoa Nederland talks $750 million seven-year notes to yield 7¼%-7½%; pricing Thursday

By Paul A. Harris

Portland, Ore., March 7 – Alcoa Nederland Holding BV talked its $750 million offering of seven-year senior notes (Ba1/BB/BB+) to yield 7¼% to 7½%, according to market sources.

The deal size will not grow.

Official talk comes inside of initial guidance of 7¾%, traders said.

The deal came into the market on the back of $650 million of reverse inquiry and was playing to $3 billion of orders on Thursday morning, according to a trader, who expects it to price to yield 7¼%, the tight end of talk.

Pricing is expected later on Thursday.

The Rule 144A and Regulation S notes come with three years of call protection.

Joint lead manager JPMorgan will bill and deliver. ING, BofA, Citigroup, Morgan Stanley and UBS are also joint lead managers.

Proceeds will be used to bolster the company’s cash position and support its ongoing financial requirements.

The prospective issuer is a subsidiary of Alcoa Corp., a Pittsburgh-based aluminum producer.

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