US-based aluminum producer Alcoa (NYSE: AA) has priced its public offering of US$1bn of notes, the company said in a statement.
The interest rate has been set at 6.150% and the notes are due August 15, 2020. The offering is expected to close by August 3, the statement said.
Alcoa expects to receive aggregate net proceeds of approximately US$993mn, after deducting underwriting discounts and estimated offering expenses.
The company intends to use the net proceeds together with cash on hand, if necessary, to fund the purchase price of its 6.50% notes due 2011, 6.00% notes due 2012 and 5.375% notes due 2013 that are tendered and accepted for purchase in its tender offers launched on Monday, the statement said.
Earlier this month, Alcoa announced Q2 net income of US$136mn, compared to a net loss of US$454mn year-on-year on higher revenues and average prices.
Revenues jumped to US$5.19bn from US$4.24bn in the second quarter of 2009.
A drop in aluminum production to 893,000t from 906,000t was offset by an increase in the average realized price to US$2,309/t, compared to US$1,667/t.
In Latin America and the Caribbean, Alcoa has operations in Chile, Peru, Argentina, Colombia, Jamaica and Brazil, the last of which represents the bulk of its earnings from the region.
The interest rate has been set at 6.150% and the notes are due August 15, 2020. The offering is expected to close by August 3, the statement said.
Alcoa expects to receive aggregate net proceeds of approximately US$993mn, after deducting underwriting discounts and estimated offering expenses.
The company intends to use the net proceeds together with cash on hand, if necessary, to fund the purchase price of its 6.50% notes due 2011, 6.00% notes due 2012 and 5.375% notes due 2013 that are tendered and accepted for purchase in its tender offers launched on Monday, the statement said.
Earlier this month, Alcoa announced Q2 net income of US$136mn, compared to a net loss of US$454mn year-on-year on higher revenues and average prices.
Revenues jumped to US$5.19bn from US$4.24bn in the second quarter of 2009.
A drop in aluminum production to 893,000t from 906,000t was offset by an increase in the average realized price to US$2,309/t, compared to US$1,667/t.
In Latin America and the Caribbean, Alcoa has operations in Chile, Peru, Argentina, Colombia, Jamaica and Brazil, the last of which represents the bulk of its earnings from the region.
No comments:
Post a Comment