By Andrea Heisinger
Omaha, July 10 - Alcoa Inc. priced $1.5 billion of notes (Baa1/BBB+/) in two tranches Thursday, an informed source said.
The $750 million of 6% five-year notes priced at 99.685 to yield 6.074%, or Treasuries plus 300 basis points.
The $750 million of 6.75% 10-year notes priced at 99.684 to yield 6.794%, or Treasuries plus 300 bps.
Both tranches have make-whole redemption options of Treasuries plus 45 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and Lehman Brothers Inc.
Proceeds will be used for general corporate purposes, including the reduction of the amount of outstanding commercial paper, purchases of common stock under a share repurchase program, working capital and capital expenditures.
The aluminum company is based in Pittsburgh.
| Issuer: | Alcoa Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Lehman Brothers Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | July 10
|
| Settlement date: | July 15
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | July 15, 2013
|
| Coupon: | 6%
|
| Price: | 99.685
|
| Yield: | 6.074%
|
| Spread: | Treasuries plus 300 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | July 15, 2018
|
| Coupon: | 6.75%
|
| Price: | 99.684
|
| Yield: | 6.794%
|
| Spread: | Treasuries plus 300 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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