Alcoa 2013 Annual Report Download - page 129

K. Debt
Long-Term Debt.
December 31, 2013 2012
6.00% Notes, due 2013 $ - $ 422
5.25% Convertible Notes, due 2014 575 575
5.55% Notes, due 2017 750 750
6.50% Bonds, due 2018 250 250
6.75% Notes, due 2018 750 750
5.72% Notes, due 2019 750 750
6.150% Notes, due 2020 1,000 1,000
5.40% Notes, due 2021 1,250 1,250
5.87% Notes, due 2022 627 627
5.90% Notes, due 2027 625 625
6.75% Bonds, due 2028 300 300
5.95% Notes due 2037 625 625
BNDES Loans, due 2014-2029 (see below for weighted average rates) 325 397
Iowa Finance Authority Loan, due 2042 (4.75%) 250 250
Other* 185 205
Less: amount due within one year
8,262
655
8,776
465
$7,607 $8,311
* Other includes various financing arrangements related to subsidiaries, unamortized debt discounts related to the
outstanding notes and bonds listed in the table above, a beneficial conversion feature related to the convertible notes,
and adjustments to the carrying value of long-term debt related to interest swap contracts accounted for as fair value
hedges (see Derivatives in Note X).
The principal amount of long-term debt maturing in each of the next five years is $658 in 2014, $30 in 2015, $30 in
2016, $778 in 2017, and $1,046 in 2018.
Public Debt—In May 2013, Alcoa elected to call for redemption the $422 in outstanding principal of its 6.00% Notes
due July 2013 (the “Notes”) under the provisions of the Notes. The total cash paid to the holders of the called Notes
was $435, which includes $12 in accrued and unpaid interest from the last interest payment date up to, but not
including, the settlement date, and a $1 purchase premium. The purchase premium was recorded in Interest expense on
the accompanying Statement of Consolidated Operations. This transaction was completed on June 28, 2013.
In January 2012, Alcoa repaid the $322 in outstanding principal of its 6.00% Notes as scheduled using available cash
on hand.
In August 2012, Alcoa and the Iowa Finance Authority entered into a loan agreement for the proceeds from the
issuance of $250 in Midwestern Disaster Area Revenue Bonds Series 2012 due 2042 (the “Bonds”). The Bonds were
issued by the Iowa Finance Authority pursuant to the Heartland Disaster Tax Relief Act of 2008 for the purpose of
financing all or part of the cost of acquiring, constructing, reconstructing, and renovating certain facilities at Alcoa’s
rolling mill plant in Davenport, IA. Alcoa received $248 in net proceeds (reflecting payment of financing costs), which
was classified as restricted cash. This transaction is not reflected in the accompanying Statement of Consolidated Cash
Flows as it represents a non-cash financing and investing activity. At December 31, 2013 and 2012, Alcoa had $13 and
$171, respectively, of restricted cash remaining, all of which was classified in Prepaid expenses and other current
assets on the accompanying Consolidated Balance Sheet. Interest on the Bonds is at a rate of 4.75% per annum and is
paid semi-annually in February and August, which commenced in February 2013. Alcoa has the option through the
loan agreement to redeem the Bonds, as a whole or in part, on or after August 1, 2022, on at least 30 days, but not more
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