Alcoa Closes $2.6B Debt Offering to Fund South32 Acquisition
AA sits 43% above its 52-week low of $30.81.
Summary
Alcoa closed a $2.6 billion senior notes offering, split between $1.5B of 6.625% notes due 2034 and $1.1B of 6.875% notes due 2036. Proceeds, along with cash on hand, will cover the $3.1 billion cash portion of the South32 acquisition. The company also terminated its bridge loan facility, replacing it with permanent financing. This is a key step toward completing the $4.1 billion deal, which still requires South32 shareholder and regulatory approvals.
At the time of this announcement, AA was trading at $44.04 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11.6B. The 52-week trading range was $30.81 to $84.38. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.