Aluminum producer Alcoa Inc. (AA: News ) said that it has priced its public offering of 150 million shares of common stock at $5.25 per share, and also announced the pricing of its convertible notes offering. Total proceeds from the two offerings, estimated to be about $1.3 billion, and is intended to be used for the repayment of outstanding indebtedness under its senior unsecured 364-day revolving credit facility.
Under the common stock offer, the company will sell 150 million shares to the public. Alcoa has also granted an option to purchase up to an additional 22.5 million shares of common stock to the underwriters on the same terms and conditions to cover over-allotments, if any.
The offerings are expected to close on March 24, 2009, subject to customary closing conditions, without contingent on the closing of each other, the company said. A is currently trading at $5.91, $0.43 or 7.85% on the NYSE, with a volume of 72 million shares.
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