Alcoa Corporation has launched a proposed offering of $2.6 billion in aggregate principal amount of senior notes to provide permanent financing for its upcoming acquisition of South32 Limited's bauxite, alumina, and aluminum assets.

The proposed debt package consists of senior notes due 2034 issued by Alumina Pty Ltd and senior notes due 2036 issued by Alcoa Nederland Holding B.V., both of which operate as wholly-owned subsidiaries of Alcoa. These notes will carry senior unsecured guarantees provided by Alcoa and certain related subsidiary entities. The exact timing of pricing and the final terms of the debt offering remain subject to prevailing market conditions and other operational factors.

The net proceeds generated from the note issuance, combined with existing cash on hand, are earmarked to directly fund the approximately $3.1 billion cash portion of the transaction consideration, alongside related transaction fees and expenses. Once the note offering reaches completion, Alcoa expects to terminate any remaining outstanding commitments under the 364-day bridge term loan credit facility that was previously arranged specifically to support the purchase.

Under the definitive agreement reached on June 30, 2026, the acquired asset portfolio significantly expands the company's operational footprint. The transaction encompasses an 86 percent stake in the Worsley Alumina refinery and an interest in the Boddington bauxite mine located in Western Australia, as well as additional established operations situated in Brazil and South Africa.

Finalisation of the overarching transaction remains conditional upon the satisfaction or waiver of several closing requirements. These necessary steps include the receipt of required regulatory approvals and the formal approval of South32 shareholders.

Read the full announcement: Alcoa Corporation Announces Proposed Debt Offering to Finance Cash Consideration for Acquisition of South32’s Bauxite, Alumina and Aluminum Assets