ALCOA

Completes sale of Warrick rolling mill to Kaiser Aluminum Corporation for $670 million

ABOUT ALCOA
 
Alcoa is a global leader in bauxite, alumina and aluminum products, with a strong portfolio of value-added cast and rolled products and significant energy resources. Alcoa is built on a foundation of strong values and operational excellence that dates back 135 years to the world-changing discovery that made aluminum an accessible and vital part of modern life. 
 
THE AGREEMENTS
 
Alcoa Corporation announced that it has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. The sale closed on March 31, 2021.
 
Pursuant to the previously announced sale agreement, Alcoa Corporation received total consideration of approximately $670 million, including Kaiser's assumption of other employee post-retirement benefit (OPEB) liabilities. The amount of the consideration is subject to customary post-closing adjustments. Alcoa retains ownership of the 269,000 tons of smelting capacity at the Warrick smelter, the Warrick electric generating units and land holdings in Warrick County, Indiana. As part of the sale, Alcoa entered into a market-based metal supply agreement, a long-term lease and a transition services agreement with Kaiser. Alcoa employs approximately 660 people in the smelter and power plant at the Warrick site.
 
 
Alcoa Corporation also announced that Alcoa Nederland Holding B.V. , a wholly owned subsidiary of Alcoa, has closed its offering of
$500,000,000 aggregate principal amount of 4.125% senior notes due 2029 (the "Notes"). The Notes are guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries. The issuer intends to use the net proceeds from the issuance of the bonds, together with available cash, to contribute approximately $500 million to the defined benefit pension plans of U.S. affiliated salaried and hourly employees and to redeem in full its outstanding 6.75% senior notes due 2024 (the "2024 Notes"), and pay fees and expenses related to the transaction. 
 

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