PITTSBURGH–(BUSINESS WIRE)–Arconic Corp. (NYSE: ARNC) announced today that it closed its offering of an additional $300 million aggregate principal amount of the Company’s 6.125% Senior Secured Second-Lien Notes due 2028. The Additional Notes were sold at 106.25% of par and the Company expects net proceeds of approximately $314 million.
Chief Executive Officer Tim Myers said, “We remain committed to reducing our legacy pension obligations and these add-on notes position us to fund a significant pension annuitization in the first half of 2021 while preserving our liquidity profile. The intended annuitization will effectively replace certain pension obligations, which have risks related to mortality and variable interest rates that are beyond our control, with long maturity notes that have a fixed obligation.”
The Company intends to use the net proceeds of the issuance of the Additional Notes for general corporate purposes, including to fund the annuitization of certain pension plan obligations. The Additional Notes are fully and unconditionally guaranteed, jointly and severally, by each of the Company’s wholly-owned domestic subsidiaries, on a senior secured second-priority basis. Each of the Additional Notes and the related guarantees are secured on a second-priority basis by liens on certain assets of the Company. The Additional Notes were issued under the indenture governing the Company’s existing 6.125% Senior Secured Second-Lien Notes due 2028 (the “Existing Notes”). The Additional Notes are treated as a single series with the Existing Notes and have the same terms as the Existing Notes, other than with respect to the date of issuance and issue price.
The Additional Notes and related guarantees were sold in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act.
About Arconic Corporation
Arconic Corporation (NYSE: ARNC), headquartered in Pittsburgh, Pennsylvania, is a leading provider of aluminum sheet, plate and extrusions, as well as innovative architectural products, that advance the ground transportation, aerospace, building and construction, industrial and packaging markets.
