Alcoa Corporation (NYSE:AA), a global leader in bauxite, alumina, and aluminum products, announced today that it is preparing to potentially offer $750 million in senior unsecured notes through its subsidiary, Alcoa Nederland Holding B.V. This potential offering is contingent on market conditions and would involve a series of fixed income investor calls starting today.
The proposed 7-year notes, if issued, would be unregistered securities sold in a private placement to qualified institutional buyers and certain non-U.S. persons. The offering would adhere to Rule 144A and Regulation S under the Securities Act of 1933, which means that the notes and related guarantees would not be offered or sold in the United States without registration or an exemption from registration requirements.
Alcoa aims to allocate an amount equal to the net proceeds from this potential offering to finance or refinance eligible green projects. These projects would conform to the Green Bond Principles set by the International Capital Market Association in 2021, underscoring the company's commitment to environmentally responsible operations.
The proceeds from the offering would bolster Alcoa's cash position and support its ongoing financial requirements, including those related to its portfolio actions as outlined in its Annual Report on Form 10-K for the year that ended on December 31, 2023.
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