Alcoa Corporation announced on September 23, 2026, the closing of a debt offering to finance the cash portion of its proposed acquisition of South32 Limited's bauxite, alumina, and aluminum operations. The company completed the sale of $2.6 billion in aggregate principal amount of senior notes.
The offering consisted of two tranches issued by wholly-owned subsidiaries:
- $1.5 billion of 6.625% senior notes due 2034, issued by Alumina Pty Ltd.
- $1.1 billion of 6.875% senior notes due 2036, issued by Alcoa Nederland Holding B.V.
The notes are guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries. The proceeds from the issuance, combined with cash on hand, are intended to fund the approximately $3.1 billion cash portion of the consideration for the South32 acquisition and related fees and expenses.
Concurrently with the closing of the notes offering, Alcoa terminated all remaining outstanding commitments under a senior unsecured 364-day bridge term loan credit facility previously entered into in connection with the acquisition.
The notes were sold in a private placement to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S. The transaction is subject to the satisfaction of certain closing conditions, including approval of South32’s shareholders and required regulatory approvals.
