Back to top

Analyst Blog

Aluminum giant Alcoa Inc. (AA - Analyst Report) declared the early redemption of its entire 6% Notes due Jul 15, 2013, in the aggregate principal amount of $422,463,000. The Notes holders were paid $1,002.60 per $1,000.00 aggregate principal amount of the Notes with accrued and unpaid interest up to, but excluding, the redemption date.

In order to increase the maturity profile of its debts, Alcoa had declared tender offerings for two series of outstanding notes in Apr 2011. The two series of cash tenders offered by Alcoa included any and entire of its 5.375% Notes due 2013 and an outstanding 6.00% Notes due 2013 subject to an aggregate purchase limit of $400 million in cash up to a maximum purchase sub limit. The maximum tender amounted to $750 million in cash less the aggregate purchase price of the 5.375% Notes due 2013.

Later, in May 2011, Alcoa announced the final results of the tender offer of the 6.00% Notes due 2013. The aggregate principal amount of 6.00% Notes tendered and not withdrawn was $327,537,000, representing 43.67% of the $750,000,000 aggregate principal amount of the 6.00% Notes outstanding prior to the Maximum Tender Offer.

Morgan Stanley & Co. Incorporated, a wing of Morgan Stanley (MS - Analyst Report), acted as the dealer manager for the tender offers and Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, the non-bank subsidiary of JPMorgan Chase & Co. (JPM - Analyst Report), played the role of Coordinating Dealer Managers for the offering. Apart from Luxembourg, Global Bondholder Services Corporation acted as the depositary and the information agent.

Alcoa commands a leading position with respect to production and management of primary aluminum, fabricated aluminum and alumina. It is also the world’s largest miner of bauxite and refiner of alumina.

Alcoa, which currently retains a Zacks Rank #3 (Hold), is set to announce its second- quarter 2013 results after the closing bell on Jul 8, 2013.

Lake Shore Gold Corp. (LSG), which also belongs to the mining industry, holds a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.71 +4.50%
BANCO DO BR… BDORY 14.24 +2.08%
GREEN PLAIN… GPRE 44.64 +1.89%
WEATHERFORD… WFT 23.31 +1.64%
AROTECH COR… ARTX 3.73 +1.50%