Alcoa gets bridge loan commitment to back Firth Rixson acquisition

By Sara Rosenberg

New York, June 26 – Alcoa received a commitment for a bridge facility to support its purchase of Firth Rixson Ltd., company officials said in a conference call on Thursday.

Morgan Stanley is the lead bank on the debt.

Officials went on to say that the plan is to issue a combination of debt and equity-content securities for the acquisition.

The company is committed to maintaining its investment-grade rating.

Under the agreement, Firth Rixson is being bought from Oak Hill Capital Partners for $2.35 billion in cash, plus $500 million of company stock and an additional $150 million potential earn-out.

Closing is expected by the end of the year, subject to customary conditions and regulatory approvals.

Firth Rixson is a Sheffield, England-based provider of seamless rolled rings, closed die forgings, open die forgings, extruded forgings and specialty metals primarily to the aerospace market. Alcoa is a New York-based lightweight metals engineering and manufacturing company.

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