Alcoa Nederland driving by with $500 million eight-year notes, initial talk mid-4% area

By Paul A. Harris

Portland, Ore., March 8 – Alcoa Nederland Holding BV plans to price a $500 million offering of eight-year senior notes (existing ratings Ba1/BB+) in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the mid-4% area, a trader said.

Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BBVA Securities Inc., BNP Paribas Securities Corp., BofA Securities Inc., Banco Bradesco SA, Deutsche Bank Securities Inc., MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America Inc. and Truist are the joint bookrunners.

ANZ Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, ING Financial Markets LLC and Westpac are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Netherlands-based aluminum producer plans to use the proceeds plus cash on hand to contribute approximately $500 million to the U.S. defined benefit pension plans applicable to salaried and hourly employees, and to pay off its 6¾% senior notes due 2024.

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