Brazil’s Suzano accepts no more tenders for 5 7/8% notes, as expected

By Susanna Moon

Chicago, Oct. 3 – Suzano Trading Ltd. said it purchased $146,233,000 of its $645.7 million principal amount of outstanding 5 7/8% senior notes due 2021, as announced on Sept. 19.

The company said on Sept. 19 that holders had tendered $262,559,000 of the notes as of 5 p.m. ET on Sept. 18, the early tender date.

Suzano then said at the time that it would purchase $150 million principal amount, or 57%, of the tendered notes on a prorated basis, which will result in the principal amount of notes to be purchased to be rounded down to about $146,233,000.

The tender cap was lifted from $100 million, as announced at the start of the offer on Sept. 5.

The issuer paid $159,393,970 to settle the early tenders on Sept. 20, or $1,090 for each $1,000 principal amount of notes.

The total amount included an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline.

The issuer also will pay accrued interest to but excluding the settlement date.

The tender had been set to remain open until 11:59 p.m. ET on Oct. 2. Because the cap had been met, however, no more notes were to be purchased in the offer.

The offer had a financing condition that required that Suzano Austria GmbH issue at least $100 million of 7% senior notes guaranteed by Suzano Papel e Celulose SA due in 2047. Suzano Papel e Celulose is the guarantor and the controlling entity of Suzano; Suzano Austria is Suzano Papel e Celulose’s subsidiary.

As reported Sept. 5, Suzano Papel e Celulose SA planned to add $100 million to the existing Suzano Austria GmbH 7% notes due 2047, bringing the total deal size of $400 million.

D.F. King & Co., Inc. (212 269-5550, 800 967-7574, fax 212 709-3328, suzano@dfking.com or dfking.com/suzano) is the tender agent and information agent. J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279), Santander Investment Securities Inc. (855 404-3636 or 212 940-1442), BB Securities Ltd. (+44 20 7367 5803 or bbssettlements@bb.com.br), Itau BBA USA Securities, Inc. (888 770-4828 or 212 710-6749) and Mizuho Securities USA LLC (866 271-7403 or 212 205-7736) are the dealer managers.

Suzano is a manufacturer and trader of short-fiber pulp eucalyptus and paper based in Sao Paulo.

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