Alcoa announces $2.6bn note offering to fund South32 assets acquisition
Alcoa Corporation has announced a proposed offering of $2.6-billion through its Alumina and Alcoa Nederland subsidiaries, offering senior notes due 2034 and 2036, respectively.
Alcoa intends to use the net proceeds of the notes to fund the $3.1-billion cash portion of its acquisition of Australia-, London- and Johannesburg-listed South32’s interests in certain bauxite, alumina and aluminium assets.
Together with cash on hand, the proceeds of the issuance of the notes are intended to provide permanent financing for the acquisition.
The South32 assets that Alcoa will take over include Hillside Aluminium smelter, in South Africa, a majority stake in the Worsley Alumina refinery and mining operation in Australia and interests in the MRN bauxite mine, alumina refinery and aluminium smelter, in Brazil.
The transaction is expected to close in the second half of the 2027 financial year.
The total enterprise value of the deal is $5.6-billion.