Arconic to exchange debt held by Citi, Credit Suisse for Alcoa stock

New York, April 27 – Arconic Inc. said it plans to exchange the Alcoa Corp. common stock that it owns for debt of the company that is held by Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.

The agreement covers 12,958,767 Alcoa shares, Arconic’s entire holding of Alcoa stock, according to a news release.

Those shares will then be sold by Citigroup and Credit Suisse to the public in a secondary offering.

Citigroup and Credit Suisse will also be underwriters for the secondary sales of stock, which may occur in one or more transactions.

Alcoa stock closed at $36.49 on April 25.

Arconic on April 24 announced that it 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 and Credit Suisse.

Citigroup and Credit Suisse had been 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 two banks 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.

Arconic is an aluminum company based in New York.

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