Daily News: September 20, 2016

Citibank Agents Alcoa Borrowing Base Reduction to $3B


Alcoa entered into an amendment to its five-year revolving credit agreement, with Citibank serving as administrative agent and JPMorgan Chase as syndication agent.

The amendment permits a separation transaction and amends certain terms of the agreement as follows:

The total commitments were reduced from $4 billion to $3 billion.

The existing financial covenant in the agreement, which was based upon the consolidated net worth of the company and its consolidated subsidiaries, will be replaced. The company will be required to maintain a ratio of indebtedness after elimination of intercompany items, to consolidated EBITDA. The applicable leverage ratio is 5.50 to 1.00 for the period of the four fiscal quarters most recently ended, declining to 3.50 to 1.00 on December 31, 2019 and thereafter.

Merrill Lynch, Banco Bilbao Vizcaya Argentaria, BNP Paribas Securities, The Bank of Tokyo-Mitsubishi UFJ, Banco Bradesco, Citibank, Credit Suisse, Deutsche Bank Securities, Goldman Sachs, Morgan Stanley Senior Funding, Sumitomo Mitsui, SunTrust Bank, ABN Amro Capital and Pierce, Fenner & Smith served as joint lead arrangers and bookrunners. Citibank served as syndication agent. Credit Suisse and Morgan Stanley Senior Funding were co-documentation agents.