Alcoa Corporation (NYSE: AA) today announced it has amended and
restated its existing Revolving Credit Facility into a $1.25
billion revolving credit facility (the “Facility”) with improved
terms, including the addition of sustainability-linked metrics.
The agreement for the Facility continues to be between Alcoa
Nederland Holding B.V., a wholly owned subsidiary of Alcoa
Corporation, and a syndicate of banks. Alcoa has not drawn on the
Facility, which has been in place since November 2016.
Some of the key benefits of the amended and restated revolving
credit agreement include:
- Greater flexibility for Alcoa to execute on its long-term
strategies.
- An extended maturity date from November 2023 to June 2027.
- Release by the lenders of the collateral package that had
previously secured the Facility, which will continue so long as
certain credit ratings are maintained.
- Additional flexibility for dividends and other restricted
payments, to make investments, and to incur indebtedness.
- A sustainability adjustment to the applicable margin and
commitment fee that may result in a positive or negative adjustment
based on two of the Company’s existing sustainability metrics.
“The improved terms of the amended Facility reinforce the
important work that we’ve completed over these past several years
to strengthen Alcoa’s balance sheet,” said Executive Vice President
and Chief Financial Officer William Oplinger. “Alcoa is well
positioned for the future, and this Facility is another proof point
of the strength of the Company and its commitment to our strategy
to advance sustainably.”
The Facility includes two of the Company’s existing
sustainability-backed metrics: First, reducing carbon dioxide
equivalent intensity in the Company’s smelting and refining
segments for direct (Scope 1) and indirect (Scope 2) emissions and,
second, increasing the percentage of renewable sources that power
the Company’s global aluminum smelters, including hydro,
geothermal, solar, wind and biomass.
Alcoa’s alumina refining portfolio currently has the world’s
lowest average carbon dioxide equivalent intensity, and its global
smelting portfolio has 81 percent of its power sources coming from
renewable energy.
In 2021, Alcoa announced its ambition to reach net zero scope 1
and scope 2 greenhouse gas emissions across its global operations
by 2050. The Company also announced a suite of research and
development projects that have the potential to decarbonize the
aluminum production process and drive value for Alcoa and its
stakeholders. More details on the technology roadmap and Alcoa’s
sustainability strategy can be found in the Company’s annual
Sustainability Report.
“As one of the world’s largest producers in the upstream
aluminum industry, Alcoa’s sustainability efforts are
industry-leading and crucial to the broader transition efforts,”
said Ana Carolina Oliveira, Head of Sustainable Finance, Americas,
ING. “This amended Facility displays Alcoa’s commitment to
sustainability and setting credible milestones in transitioning the
aluminum industry to net-zero emissions, a critical sector to the
achievement of global climate goals.”
JPMorgan Chase acted as the administrative agent, Citibank N.A.
as the syndication agent, and ING Capital LLC as the sustainability
structuring agent.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products with a vision to reinvent the aluminum
industry for a sustainable future. With a values-based approach
that encompasses integrity, operating excellence, care for people
and courageous leadership, our purpose is to Turn Raw Potential
into Real Progress. Since developing the process that made aluminum
an affordable and vital part of modern life, our talented Alcoans
have developed breakthrough innovations and best practices that
have led to greater efficiency, safety, sustainability and stronger
communities wherever we operate.
Learn more about Alcoa’s sustainability strategy and social,
economic, and environmental progress at
www.alcoa.com/sustainability.
Dissemination of Company Information
Alcoa intends to make future announcements regarding Company
developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls and
webcasts.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations, and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “aim,” “ambition,” “anticipates,”
“believes,” “could,” “develop,” “endeavors,” “estimates,”
“expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,”
“plans,” “potential,” “projects,” “reach,” “seeks,” “sees,”
“should,” “targets,” “will,” “working,” “would,” or other words of
similar meaning. All statements by Alcoa Corporation that reflect
expectations, assumptions or projections about the future, other
than statements of historical fact, are forward-looking statements.
Forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties, and
changes in circumstances that are difficult to predict. Although
Alcoa Corporation believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained, and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Additional information concerning factors
that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220629005705/en/
Investor Contact: James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contact: Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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