Alcoa (ASX:AAI) said that its unit Alumina will conduct a proposed offering of $1 billion aggregate principal amount of senior notes, according to a Monday release.

The notes and related guarantees will be sold in a private placement to qualified institutional buyers and the timing of pricing as well as the terms of the notes are subject to market conditions and other factors, the release said.

The notes will be guaranteed on a senior unsecured basis by the dual-listed firm and certain of its units.

The proceeds will be deployed within the Alcoa group, including funding contributions to Alcoa unit Alcoa Nederland Holding via a series of intercompany transactions, including the repayment of intercompany indebtedness and the issuance of intercompany dividends.

Alcoa Nederland Holding will use the funds along with cash on hand, to fund the purchase price of the cash tender offers for its outstanding $750 million aggregate principal amount of 5.5% notes due 2027 and up to $250 million of $500 million aggregate principal amount of 6.125% notes due 2028.