Alcoa 2010 Annual Report Download - page 112

K. Debt
Long-Term Debt.
December 31, 2010 2009
7.375% Notes, due 2010 $ - $ 511
6.5% Notes, due 2011 - 584
6% Notes, due 2012 322 517
5.375% Notes, due 2013 553 600
6% Notes, due 2013 750 750
5.25% Convertible Notes, due 2014 575 575
5.55% Notes, due 2017 750 750
6.5% Bonds, due 2018 250 250
6.75% Notes, due 2018 750 750
5.72% Notes, due 2019 750 750
6.15% Notes, due 2020 1,000 -
5.87% Notes, due 2022 627 627
5.9% Notes, due 2027 625 625
6.75% Bonds, due 2028 300 300
5.95% Notes due 2037 625 625
BNDES Loans, due 2011-2029 (see below for weighted average rates) 899 1,075
Other* 297 354
9,073 9,643
Less: amount due within one year 231 669
$8,842 $8,974
* Other includes various financing arrangements related to subsidiaries, unamortized debt discounts, a beneficial
conversion feature related to the convertible notes (see below), and adjustments to the carrying value of long-term
debt related to interest swap contracts accounted for as fair value hedges (see the Derivatives section of Note X).
The principal amount of long-term debt maturing in each of the next five years is $231 in 2011, $490 in 2012, $1,464
in 2013, $775 in 2014, and $44 in 2015.
Public Debt—On August 1, 2010, Alcoa repaid the $511 of outstanding principal of its 7.375% Notes as scheduled
using available cash on hand.
In August 2010, Alcoa completed a public debt offering under its existing shelf registration statement for $1,000 of
6.150% Notes due 2020 (the “2020 Notes”). Alcoa received $993 in net proceeds from the public debt offering
reflecting an original issue discount and payment of financing costs. The net proceeds were used for the early
retirement of $825 in outstanding notes (see below), early repayment of $88 in outstanding loans related to the refinery
expansion and bauxite mine development in Brazil (see BNDES Loans below), and the remainder was for the
repayment of other outstanding debt. The original issue discount and financing costs were deferred and are being
amortized to interest expense over the term of the 2020 Notes. Interest on the 2020 Notes will be paid semi-annually in
February and August, commencing February 2011. Alcoa has the option to redeem the 2020 Notes, as a whole or in
part, at any time or from time to time, on at least 30 days, but not more than 60 days, prior notice to the holders of the
2020 Notes at a redemption price specified in the 2020 Notes. The 2020 Notes are subject to repurchase upon the
occurrence of a change in control repurchase event (as defined in the 2020 Notes) at a repurchase price in cash equal to
101% of the aggregate principal amount of the 2020 Notes repurchased, plus any accrued and unpaid interest on the
2020 Notes repurchased. The 2020 Notes rank pari passu with Alcoa’s other unsecured senior unsubordinated
indebtedness.
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