New Issue: Alcoa sells upsized $1.25 billion 5.4% 10-year notes to yield 195 bps over Treasuries

By Sheri Kasprzak

New York, April 13 - Alcoa Inc. sold $1.25 billion of 10-year senior notes on Wednesday, according to a term sheet. The offering was upsized from $750 million.

The 5.4% notes priced at 99.848 to yield 5.42%, or Treasuries plus 195 bps.

There is a make-whole call at Treasuries plus 30 bps.

The notes (Baa3/BBB-/BBB-) were sold through joint bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Credit Suisse Securities (USA) LLC and RBS Securities Inc.

The co-managers were Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., ANZ Securities Inc., Banco Bilbao Vizcaya Argentaria SA, BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, Goldman, Sachs & Co., UBS Securities LLC, Commerz Markets LLC, Banca IMI SpA, SMBC Nikko Capital Markets Ltd., SG Americas Securities LLC, US Bancorp Investments Inc. and Williams Capital Group LP.

Proceeds will be used for general corporate purposes, including acquisitions, working capital and debt refinancing. The proceeds will also be used, together with cash on hand, to fund the purchase of the company's 5.375% notes due Jan. 15, 2013 and 6% notes due July 15, 2013 that are tendered and accepted for purchase under a tender offered launched Wednesday.

Based in New York, Alcoa is an aluminum producer.

Issuer:	Alcoa Inc.
Issue:	Senior notes
Amount:	$1.25 billion, increased from $750 million
Maturity:	April 15, 2021
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Credit Suisse Securities (USA) LLC, RBS Securities Inc.
Co-managers:	Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., ANZ Securities Inc., Banco Bilbao Vizcaya Argentaria SA, BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, Goldman Sachs & Co., UBS Securities LLC, Commerz Markets LLC, Banca IMI SpA, SMBC Nikko Capital Markets Ltd., SG Americas Securities LLC, US Bancorp Investments Inc., Williams Capital Group LP
Coupon:	5.4%
Price:	99.848
Yield:	5.42%
Spread:	Treasuries plus 195 bps
Call:	Make-whole at Treasuries plus 30 bps
Ratings:	Moody's: Baa3
	Standard & Poor's: BBB-
	Fitch: BBB-
Pricing date:	April 13
Settlement date:	April 21

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