NEW YORK CITY (dpa-AFX) - Alcoa (AA) announced the pricing of public offering of 25 million of depositary shares at $50 per Share. The offering is expected to close on September 22, 2014.
In addition, the company granted underwriters an option to buy additional 3.75 million Depositary Shares to cover over-allotments, if any
Each Depositary Share represents a 1/10th interest in a share of Alcoa's 5.375% Class B Mandatory Convertible Preferred Stock, Series 1, par value $1.00 per share.
The company expects offering net proceeds, after deducting underwriting discount and commissions and estimated offering expenses, to be approximately $1.2 billion. If the underwriters exercise their over-allotment option in full, net proceeds are expected to be approximately $1.4 billion.
Alcoa intends to use offering net proceeds, if completed, as partial consideration to finance acquisition of the Firth Rixson business and to pay related fees and expenses.
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