Alcoa Corporation has announced that its subsidiary, Alcoa Nederland Holding B.V., will redeem the full $141 million principal of its outstanding 5.500% notes due 2027 on December 15 2025, paying 100 % of principal plus accrued interest.
The redemption reduces Alcoa’s long‑term debt and brings its adjusted net debt closer to the company’s target range of $1.0 billion to $1.5 billion. As of September 30 2025, Alcoa reported $1.49 billion in cash on hand and a debt‑to‑equity ratio of 0.41, indicating a conservative leverage profile. The $141 million redemption removes a guaranteed debt layer and lowers interest expense, strengthening the balance sheet.
The cash used for the redemption comes from Alcoa’s on‑hand cash, preserving liquidity for strategic initiatives. Alcoa’s capital‑allocation framework prioritizes a strong balance sheet, operational improvements, shareholder returns, and growth investments. By reducing debt, the company frees capital for low‑carbon production and critical‑mineral projects, such as its Sustana low‑carbon product line and the gallium plant in Western Australia.
The redemption aligns with Alcoa’s broader financial discipline. The company’s Q3 2025 results—an adjusted net loss of $6 million and revenue of $3 billion—highlight the importance of disciplined capital use. The debt reduction supports Alcoa’s goal of maintaining a net debt range that balances financial flexibility with investment capacity.
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