Alcoa Completes 6% Notes Redemption - Analyst Blog


Aluminum giant Alcoa Inc. ( AA ) declared the early redemption of its entire 6% Notes due Jul 15, 2013, in the aggregate principal amount of $422,463,000. The Notes holders were paid $1,002.60 per $1,000.00 aggregate principal amount of the Notes with accrued and unpaid interest up to, but excluding, the redemption date.

In order to increase the maturity profile of its debts, Alcoa had declared tender offerings for two series of outstanding notes in Apr 2011. The two series of cash tenders offered by Alcoa included any and entire of its 5.375% Notes due 2013 and an outstanding 6.00% Notes due 2013 subject to an aggregate purchase limit of $400 million in cash up to a maximum purchase sub limit. The maximum tender amounted to $750 million in cash less the aggregate purchase price of the 5.375% Notes due 2013.

Later, in May 2011, Alcoa announced the final results of the tender offer of the 6.00% Notes due 2013. The aggregate principal amount of 6.00% Notes tendered and not withdrawn was $327,537,000, representing 43.67% of the $750,000,000 aggregate principal amount of the 6.00% Notes outstanding prior to the Maximum Tender Offer.

Morgan Stanley & Co. Incorporated, a wing of Morgan Stanley ( MS ), acted as the dealer manager for the tender offers and Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, the non-bank subsidiary of JPMorgan Chase & Co. ( JPM ), played the role of Coordinating Dealer Managers for the offering. Apart from Luxembourg, Global Bondholder Services Corporation acted as the depositary and the information agent.

Alcoa commands a leading position with respect to production and management of primary aluminum, fabricated aluminum and alumina. It is also the world's largest miner of bauxite and refiner of alumina.

Alcoa, which currently retains a Zacks Rank #3 (Hold), is set to announce its second- quarter 2013 results after the closing bell on Jul 8, 2013.

Lake Shore Gold Corp. ( LSG ), which also belongs to the mining industry, holds a Zacks Rank #2 (Buy).

ALCOA INC (AA): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

LAKE SHORE GOLD (LSG): Free Stock Analysis Report

MORGAN STANLEY (MS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AA , JPM , LSG , MS

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