New Issue: Alcoa prices $500 million 10-year notes at par to yield 6 1/8%

By Paul A. Harris

Portland, Ore., May 14 – Alcoa Corp. priced a $500 million issue of 10-year senior notes (Ba1/BB+) at par to yield 6 1/8% in a quick-to-market trade on Monday, according to market sources.

The yield came at the tight end of yield talk in the 6¼% area and well inside of initial guidance in the 6½% area.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. were the joint bookrunners.

The Pittsburgh-based aluminum producer intends to issue the notes via its wholly owned subsidiary, Alcoa Nederland Holding BV, with proceeds to be used for general corporate purposes, including mandatory or discretionary contributions to Alcoa’s U.S. pension and other post-retirement benefit plans.

Issuer:	Alcoa Nederland Holding BV
Amount:	$500 million
Maturity:	May 15, 2028
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., BNP Paribas Securities Corp.
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	314 bps
Call protection:	Five years
Trade date:	May 14
Settlement date:	May 17
Ratings:	Moody's: Ba1
	S&P BB+
Distribution:	Rule 144A for life
Price talk:	6¼% area
Marketing:	Quick to market

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