Alcoa Enters Material Agreement, Takes on New Financial Obligation

TL;DR

**Alcoa just took on a new major financial obligation, details to follow.**

AI Summary

Alcoa Corp filed an 8-K on January 19, 2024, reporting an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation" on January 17, 2024. This indicates Alcoa has entered into a significant new contract or taken on new debt, which could impact its financial health and future operations. Investors should pay close attention to the details of this agreement, as it could affect the company's profitability and risk profile, potentially influencing stock performance.

Why It Matters

This filing signals a potentially significant change in Alcoa's financial commitments or operational strategy, which could directly influence its future earnings and debt levels.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without disclosing specific terms, creating uncertainty about its potential impact on the company's financial health.

Analyst Insight

Investors should monitor Alcoa's future filings and announcements for specific details regarding the material agreement and financial obligation to assess their impact on the company's financial health and outlook.

Key Players & Entities

• Alcoa Corp (company) — the registrant filing the 8-K
• January 17, 2024 (date) — date of the earliest event reported
• January 19, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Alcoa will provide more details about the material definitive agreement and financial obligation in a subsequent filing or earnings call. (Alcoa Corp) — high confidence, target: Q1 2024 earnings call

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share AA New York Stock Exchang
• $450 m — uring charges in Consolidated EBITDA of $450 million, in each case for the 2024 fiscal
• $1.25 billion — d Revolving Credit Agreement remains at $1.25 billion. The foregoing description of the Amen

Filing Documents

• d701083d8k.htm (8-K) — 31KB
• d701083dex101.htm (EX-10.1) — 1055KB
• 0001193125-24-010382.txt ( ) — 1462KB
• aa-20240117.xsd (EX-101.SCH) — 2KB
• aa-20240117_lab.xml (EX-101.LAB) — 18KB
• aa-20240117_pre.xml (EX-101.PRE) — 11KB
• d701083d8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. On January 17, 2024, Alcoa Corporation (the "Company"), Alcoa Nederland Holding B.V., a wholly owned subsidiary of the Company (the "Borrower"), and certain subsidiaries of the Company, entered into Amendment No. 1 ( "Amendment No. 1") to the Revolving Credit Agreement, dated as of September 16, 2016, as amended as of October 26, 2016, as amended and restated as of November 14, 2017, as amended and restated as of November 21, 2018, as amended as of August 16, 2019, as amended as of April 21, 2020, as amended as of June 24, 2020, as amended as of March 4, 2021 and as amended and restated as of June 27, 2022 (the "Original Revolving Credit Agreement"), in each case, with a syndicate of lenders and issuers named therein, and JPMorgan Chase Bank, N.A., as administrative agent (the "Administrative Agent") for the lenders and issuers. Amendment No. 1 was entered into to amend certain terms of the Original Revolving Credit Agreement (the Original Revolving Credit Agreement, as amended by Amendment No. 1, the "Amended Revolving Credit Agreement"). The Amended Revolving Credit Agreement provides additional flexibility to the Company and the Borrower by temporarily (i) reducing the minimum interest coverage ratio required thereunder from 4.00 to 1.00 to a ratio of 3.00 to 1.00 and (ii) providing for a maximum addback for cash restructuring charges in Consolidated EBITDA of $450 million, in each case for the 2024 fiscal year. As of January 1, 2025, the minimum interest coverage ratio requirement will revert to 4.00 to 1.00 and the maximum addback for cash restructuring charges in Consolidated EBITDA will revert to 15% of Consolidated EBITDA. The requirement that the Company maintain a debt to capitalization ratio not to exceed .60 to 1.00 was not changed by Amendment No. 1. In connection with Amendment No. 1, the Company also agreed to provide collateral for its obligations under the Amended Revolving Credit Agreement,

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation or an Off-Balance Sheet Arrangement of a Registrant. The information set forth under "Item 1.01. Entry into a Material Definitive Agreement" of this Current Report on Form 8-K ("Form 8-K") is hereby incorporated by reference into this Item 2.03.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit number Description 10.1 Amendment No. 1, dated as of January 17, 2024, which includes, as Exhibit A thereto, the Revolving Credit Agreement, dated as of September 16, 2016, as amended as of October 26, 2016, as amended and restated as of November 14, 2017, as amended and restated as of November 21, 2018, as amended as of August 16, 2019, as amended as of April 21, 2020, as amended as of June 24, 2020, as amended as of March 4, 2021, as amended and restated as of June 27, 2022 and as amended as of January 17, 2024, among Alcoa Corporation, Alcoa Nederland Holding B.V., the lenders and issuers from time to time party thereto, and JPMorgan Chase Bank N.A., as administrative agent for the lenders and issuers. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ALCOA CORPORATION By: /s/ Marissa P. Earnest Marissa P. Earnest Senior Vice President, Chief Governance Counsel and Secretary Date: January 18, 2024

View Full Filing

View this 8-K filing on SEC EDGAR