Alcoa obtains $2.5 billion bridge loan commitment from Morgan Stanley

By Tali Rackner

Norfolk, Va., June 27 – Alcoa Inc. obtained a commitment letter under which Morgan Stanley Senior Funding, Inc. will provide a $2.5 billion 364-day senior bridge term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds will be used to finance all or a portion of the cash consideration for its acquisition of the Firth Rixson business (including the repayment or redemption of the existing material debt of FR Acquisition Corp. and FR Acquisitions Corp. (Europe) Ltd.) and to pay the fees and expenses incurred.

Alcoa said it will subsequently issue a combination of debt and equity-content securities.

Alcoa is a Pittsburgh-based producer of primary aluminum, fabricated aluminum and alumina.

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