Usiminas subsidiaries tender for $200 million 8¼% notes, 7¼% notes

By Jennifer Chiou

New York, Oct. 1 - Usinas Siderurgicas de Minas Gerais SA (Usiminas) announced that its Danish subsidiaries, Usiminas Galvanized Steel A/S and Usiminas Electrogalvanized Steel A/S, launched a cash tender offer for any and all of the $200 million of 8¼% senior notes due 2016 issued by Cosipa Commercial Ltd.

The companies are also tendering for some of the $400 million of 7¼% notes due 2018 issued by Usiminas Commercial Ltd. The amount of 7¼% notes to be accepted will be equal to $200 million less the amount of 8¼% notes accepted.

If all $200 million of the 8¼% notes are accepted for purchase, no 7¼% notes will be purchased in the offer.

The offer will end at 5 p.m. ET on Oct. 29.

For each $1,000 principal amount, the companies are offering $1,127.50 for the 8¼% notes and $1,115 for the 7¼% notes, both including a $30.00 early tender payment to those who participate prior to 5 p.m. ET on Oct. 15.

The companies will also pay accrued interest.

There is no minimum tender condition. Any tenders for the 8¼% notes in excess of the maximum tender amount will be accepted on a prorated basis.

D.F. King & Co., Inc. is the information agent (800 967-7921 or 212 269-5550). Santander Investment Securities Inc. is the dealer manager (212 407-7822).

Usiminas is a Belo Horizonte, Brazil, producer of flat rolled products, including slabs, hot and cold rolled coils and sheets, plates, heavy plates and galvanized products.

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