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Aluminum June 30, 2022 04:55:10 PM

Alcoa Credit Facility Amended with Improved Terms

Paul Ploumis
ScrapMonster Author
The agreement is between Alcoa Nederland Holding B.V., a wholly owned subsidiary of Alcoa Corporation, and a syndicate of banks.

Alcoa Credit Facility Amended with Improved Terms

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced that it has amended and restated its existing revolving credit facility. The facility has been amended to a new value of $1.25 billion, with improved terms, including the addition of sustainability-linked metrics.

The agreement is between Alcoa Nederland Holding B.V., a wholly owned subsidiary of Alcoa Corporation, and a syndicate of banks. The facility has been in place since November 2016. However, Alcoa has not drawn on the facility.

The amended facility provides greater flexibility for the company to execute on its long-term strategies. The maturity date has now been extended from November 2023 to June 2027. As per the amended terms, lenders will release the collateral package previously secured by the facility upon maintaining certain credit ratings. Also, it provides additional flexibility for dividends and other restricted payments, in addition to offering sustainability adjustment to the applicable margin and commitment fee.

William Oplinger, Executive Vice President and Chief Financial Officer, Alcoa Corporation noted that the terms of the amended facility will reinforce the company’s works over the past several years to strengthen its balance sheet. The facility is a testament of the company’s strength and its commitment to advance sustainability, he added.

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