Arconic buys back $44.97 million 6½% notes, $250 million 5.72% notes

By Marisa Wong

Morgantown, W.Va., April 24 – Arconic Inc. purchased $44,974,000 of its 6½% senior notes due 2018 and $249,999,000 of its 5.72% senior notes due 2019 from Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC on Monday, according to an 8-K filing with the Securities and Exchange Commission.

As previously announced, Citigroup and Credit Suisse are conducting three separate cash tender offers for Arconic’s 6½% senior notes due 2018, 6¾% senior notes due 2018 and 5.72% senior notes due 2019.

The purchasers previously said they intend to negotiate to sell the notes to Arconic for cash or to exchange the notes for shares of Alcoa Corp. common stock held by Arconic.

As part of their negotiation with Arconic to sell or exchange the notes, the purchasers may offer to consent to proposed amendments to the terms of the indentures governing the notes.

The amendments would reduce the minimum notice period required for a redemption of the notes to three business days from 30 days and eliminate or modify some or all restrictive covenants, events of default and other provisions contained in the indentures.

If the purchasers purchase a sufficient amount of notes under the tender offers to deliver the required consents, and the company executes supplemental indentures to effect the proposed changes, the amendments will not be operative until the purchasers have completed a sale or an exchange of the notes to the company. In addition, the purchasers will not offer to consent to proposed amendments to the terms of any note indenture if that series has been or will be purchased on a prorated basis under the offers, according to a previous news release.

Arconic announced pricing and early results of the tender offers on April 19, as previously reported.

Global Bondholder Services Corp. (866 924-2200 or 866 430-3774) is the depositary and information agent. There are no dealer managers for the offers.

Additional information on the offers can also be obtained from Citigroup (800 558-3745 or 212 723-6106) and Credit Suisse (800 820-1653 or 212 538-1862).

Formerly known as Alcoa Inc., Arconic is an aluminum company based in New York.

© 2015 Prospect News.
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