Summary
This Form 8-K filing by Alcoa Inc. (the predecessor to Howmet Aerospace Inc.) on May 31, 2011, primarily announces the company's decision to redeem its outstanding 5.375% Notes due 2013, with an aggregate principal amount of $283,902,000. The redemption is scheduled for June 28, 2011, and the redemption price will be determined based on specific provisions within the notes, including a floor of 100% of the principal amount and a calculation involving present values discounted against U.S. Treasury rates plus 20 basis points, in addition to accrued interest. Furthermore, Alcoa expects to incur an after-tax net charge of approximately $30 million in the second quarter of 2011. This charge relates to the early retirement of debt, including the redemption of these 5.375% Notes and the settlement of associated interest rate swaps, which follows the completion of prior tender offers for these and other notes. Investors should note the forward-looking statements and associated risks detailed in the filing, particularly concerning market conditions and interest rate fluctuations.
Key Highlights
- 1Alcoa Inc. is redeeming all outstanding 5.375% Notes due 2013.
- 2The aggregate principal amount of the notes to be redeemed is $283,902,000.
- 3The redemption date for these notes is June 28, 2011.
- 4The redemption price will be the greater of par value or a present value calculation plus accrued interest.
- 5An after-tax net charge of approximately $30 million is expected in Q2 2011 due to debt retirement and swap settlements.
- 6This action is part of Alcoa's broader debt management strategy following prior tender offers.