Alcoa offers to repurchase all 5.375% notes, portion of 6% notes

By Angela McDaniels

Tacoma, Wash., April 13 - Alcoa Inc. began tender offers for its $552,933,000 of 5.375% notes due 2013 and its $750 million of 6% notes due 2013, according to a company news release.

The company is offering to buy any and all of the 5.375% notes. The amount of 6% notes purchased is subject to a cap that will be the lesser of (a) $400 million and (b) $750 million less the total purchase price of the 5.375% notes.

For each $1,000 principal amount, the purchase price is $1,073.75 for the 5.375% notes and $1,100.00 for the 6% notes. These prices include an early tender premium of $20.00 for each note tendered by the early tender date, which is 5 p.m. ET on April 20 for the 5.375% notes and 5 p.m. ET on April 28 for the 6% notes.

Alcoa will also pay accrued interest up to but excluding the settlement date.

The tender offers will expire at 5 p.m. ET on May 12.

The company has begun an underwritten public offering of senior debt securities and will use the proceeds to fund the tender offers. The tender offers are conditioned on Alcoa receiving sufficient financing.

The coordinating dealer managers for the tender offers are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424), and Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-1057) is the dealer manager.

The information agent is Global Bondholder Services Corp. (866 804-2200). The Luxembourg agent for the 5.375% notes offer is Deutsche Bank Luxembourg SA (00352-421-22-643).

Alcoa is an aluminum company based in Pittsburgh.

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