Arconic divesting Alcoa Corp. shares in debt-for-equity swap
Arconic Inc., the company created to house the Alcoa wheel business and other metal manufacturing functions following the separation of Alcoa Inc. into two entities last November, is divesting its stake in the other entity, Alcoa Corporation, which is engaged in the mining and manufacture of raw aluminium. The debt-for-equity exchange of Alcoa Corporation common stock will see 12,958,767 shares swapped for debt held by Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC. Once the transaction is complete, Arconic will no longer hold an ownership stake in Alcoa.
Citigroup and Credit Suisse will sell the almost 13 million Alcoa shares in a secondary public offering. The two parties are acting as the underwriters for the offering, and they propose to offer the shares for sale in one or more transactions on the NYSE or in the over-the-counter market.