Arconic to sell $300 million tap of 6 1/8% notes due 2028 on Wednesday; initial talk 105.75-106.25

By Paul A. Harris

Portland, Ore., Feb. 24 – Arconic Corp. plans to price a $300 million add-on to its 6 1/8% senior second-lien secured notes due Feb. 15, 2028 (existing ratings Ba1/BB+) in a Wednesday drive-by following a mid-morning conference call with investors, according to market sources.

Initial price talk is 105.75 to 106.25, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Truist Securities Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., CIBC World Markets Corp., PNC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Standard Chartered Bank are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable on Feb. 15, 2023 at 103.063.

The Pittsburgh-based producer of aluminum sheet and plate products plans to use the proceeds for general corporate purposes, including the annuitization of certain pension plan obligations.

The original $600 million issue priced in February 2020.

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