Alcoa Corporation has priced a $2.6 billion senior notes debt offering to provide permanent financing for the cash portion of its proposed acquisition of South32 Limited's bauxite, alumina, and aluminum assets.

The debt financing comprises $1.5 billion of 6.625 percent senior notes due in 2034, issued by Alumina Pty Ltd, alongside $1.1 billion of 6.875 percent senior notes due in 2036, issued by Alcoa Nederland Holding B.V. Both issuing entities operate as wholly-owned subsidiaries of Alcoa, and the notes carry senior unsecured guarantees from Alcoa and select subsidiaries.

The net proceeds from the offering, combined with existing cash on hand, are earmarked to fund the approximately $3.1 billion cash consideration required for the transaction, alongside related fees and expenses. Upon the completion of the debt offering, the company expects to terminate its outstanding commitments for a senior unsecured 364-day bridge term loan credit facility established specifically for the acquisition.

The sale of the notes is expected to be completed on September 23, 2026, subject to customary closing conditions. Final completion of the broader South32 asset acquisition remains contingent on receiving required regulatory approvals and securing approval from South32 shareholders.

Alcoa operates an active portfolio of 13 projects spanning bauxite, alumina, and aluminum production across Australia, Canada, Norway, the United States, and Spain. The asset acquisition builds upon the company's broader operational footprint, following second-quarter 2026 financial results that reported $4 billion in revenue alongside the initial announcement of the South32 transaction.

Read the full announcement: Alcoa Corporation Announces Pricing of Debt Offering