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ALCOA TO REDEEM DEBENTURES; TAKE QUARTERLY CHARGE

 ALCOA TO REDEEM DEBENTURES; TAKE QUARTERLY CHARGE
 PITTSBURGH, May 5 /PRNewswire/ -- Alcoa (NYSE: AA) will redeem all


of its 7 percent debentures due 1996, which were offered in November 1981 at 53.864 percent of their $300 million face amount.
 Though the debentures carry a coupon rate of 7 percent, the effective rate for the company through to maturity is 14.7 percent.
 The redemption will result in an extraordinary, after-tax charge of $49.6 million, or 58 cents a common share, in the second quarter of 1992. The charge is principally the unamortized amount of the discount. Announcing the action, Alcoa reported that its interest costs through 1996 will be reduced substantially by the redemption.
 The redemption price for the debentures will be 100 percent of the principal amount, plus interest to the redemption date of June 4, 1992. The debentures may be redeemed at Pittsburgh National Bank, 1500 Penn Ave., Pittsburgh; or PNC Trust Corporation of New York, 40 Broad Street, New York; or by mail to Pittsburgh National Bank, Bond Service Department, P.0. Box 608, Pittsburgh, Pa. 15230-0608.
 -0- 5/5/92
 /CONTACT: A.T. Posti of Alcoa, 412-553-4465/
 (AA) CO: Alcoa ST: Pennsylvania IN: MNG SU:


CD -- PG011 -- 6727 05/05/92 16:15 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:May 5, 1992
Words:210
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