Trump announces trade deal with EU following months of negotiations
PITTSBURGH - Alcoa (NYSE:AA) Corporation (NYSE:AA; ASX:AAI), a leader in the production of bauxite, alumina, and aluminum products, with a market capitalization of $8.6 billion, has announced through its wholly-owned subsidiary, Alumina (OTC:AWCMY) Pty Ltd, the proposed offering of $1 billion in senior notes. These notes will be guaranteed by Alcoa and certain subsidiaries on an unsecured basis. According to InvestingPro data, the company maintains a "Fair" financial health score, with a current ratio of 1.45x indicating adequate liquidity.
The company plans to use the proceeds within the Alcoa group, primarily to fund contributions to Alcoa Nederland Holding B.V. This includes repaying intercompany debts and issuing dividends. The funds will also support cash tender offers for existing notes due in 2027 and 2028, with any remaining proceeds earmarked for general corporate purposes. The company’s total debt stands at $2.86 billion, with a manageable debt-to-equity ratio of 0.55x. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with analysts projecting net income growth this year.
The private placement targets qualified institutional buyers, adhering to Rule 144A, and certain non-U.S. persons in offshore transactions, in line with Regulation S of the Securities Act of 1933. These notes and guarantees will not be registered under the Securities Act or any state securities laws, thus not being available for sale in the United States without registration or an exemption.
This press release does not represent an offer or solicitation to buy or sell any security, including the senior notes or existing notes. The offers will be made solely through a private offering memorandum, and the tender offers through the relevant offer to purchase and notice of guaranteed delivery.
Alcoa’s forward-looking statements indicate plans for the proposed notes offering and the intended use of the net proceeds, reflecting the company’s ongoing commitment to financial strategy and sustainable industry practices.
The information provided is based on a press release statement from Alcoa Corporation.
In other recent news, Alcoa Corporation has announced a quarterly cash dividend of $0.10 per share for both its common stock and Series A convertible preferred stock. Eligible stockholders will receive this payment on March 20, 2025. Meanwhile, Alcoa’s Chairman, Steven W. Williams, will not stand for re-election at the upcoming Annual Meeting of Stockholders, resulting in a reduction of the Board from twelve to eleven members. This leadership change is not due to any disagreement with the Board or the company.
Additionally, Alcoa’s President and CEO, William Oplinger, discussed potential impacts of proposed tariffs on the aluminum industry at a recent conference, expressing concerns about a possible net negative impact on the company. The tariffs could affect Alcoa’s operations in the US and Canada, potentially leading to job losses and changes in metal trade flows. In related developments, Japan and Australia are seeking exemptions from the US tariffs on steel and aluminum, which are set to be reinstated next month.
Lastly, Alcoa’s shares, along with other metal producers, have experienced a rise following President Trump’s announcement of new tariffs on metal imports. This policy is seen as potentially beneficial for domestic producers by reducing foreign competition. Investors are keeping an eye on further developments regarding these tariffs and any reciprocal measures that might be introduced by the US.
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