Pittsburgh-based Arconic Inc. has proposed offering second-lien notes by Arconic Rolled Products Corp., which is currently a wholly-owned subsidiary of Arconic. Arconic Rolled Products intends to use the proceeds to make a payment to Arconic to fund the transfer of certain assets in connection with Arconic’s previously announced plan to separate into two standalone, publicly traded companies and for general corporate purposes.
The offering of $600 million was priced at 6.125 percent, with the notes due 2028. The sale should be completed Feb. 7, subject to customary closing conditions.
The net proceeds from the proposed offering will be held in escrow until the completion of the separation and the satisfaction of other escrow release conditions.
The separation of Howmet Aerospace Inc. and Arconic Corp remains on track for April 1, 2020. Timothy D. Myers will be appointed as CEO-Designate of Arconic, upon the legal separation.
