ALCAN INC. has announced the public offerings in the United States of US$400 million of 6.45 per cent debentures, due to 2011 and of US$400 million of 7.25 per cent debentures due to 2031.
The debentures due to 2011 are priced at 99.748 per cent of their principal amount to yield 6.485 per cent and the debentures due 2031 are priced at 99.241 per cent of their principal amount to yield 7.313 per cent. Morgan Stanley & Co. Incorporated, Credit Suisse First Boston Corporation, RBC Dominion Securities Corporation, Salomon Smith Barney Inc., Scotia Capital (USA) Inc.,CIBC World Markets Corp., and Toronto Dominion Securities (USA) are co-underwriters of the offerings, which are to be made by prospectus only.
Net proceeds to the company from the sale of the debentures will be used to repay debt outstanding under bank credit facilities and commercial paper borrowings issued at variable interest rates.
The company, in a statement on Wednesday, also denied rumours concerning a bid it may be considering for Billiton. "Alcan confirms there are no negotiations underway in this regard," the statement said.
Alcan is a multinational market-driven company and a global leader in aluminium and specialty packaging with annual revenues of approximately US$13 billion.
