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Alcoa Corporation Announces Pricing of Debt Offering

1. Alcoa priced $1 billion in senior notes via subsidiary Alumina Pty Ltd. 2. Notes are guaranteed by Alcoa, with a closing date planned for March 2025.

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FAQ

Why Neutral?

Issuing debt can provide necessary capital but also implies future financial obligations. Similar offerings previously increased liquidity, though market reaction can vary based on interest rates.

How important is it?

The issuance of senior notes could impact Alcoa’s future cash flows and leverage ratios, making it relevant for stock valuation. The amount raised may influence growth strategies but carries risk as well.

Why Long Term?

The notes are set to mature in the long term, affecting Alcoa's capital structure significantly as they will be guaranteed by Alcoa, potentially influencing its financial metrics over several years.

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PITTSBURGH--(BUSINESS WIRE)--Alcoa Corporation (NYSE:AA; ASX: AAI) (“Alcoa”) announced today that Alumina Pty Ltd (ABN 85 004 820 419) (the “Issuer”), a wholly-owned subsidiary of Alcoa, has priced an offering of $1,000,000,000 aggregate principal amount of senior notes (the “notes”). The notes will be guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries. The sale of the notes is expected to be completed on March 17, 2025, subject to customary closing conditions. The.

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