Credit Suisse plans cash offer for three series of Braskem notes

By Jennifer Chiou

New York, April 16 - Braskem Finance Ltd., a subsidiary of Braskem SA, said that Credit Suisse Securities (USA) LLC plans to launch a cash tender offer for the following:

• Braskem Finance's $85,093,000 outstanding principal amount of 8% notes due 2017;

• Braskem Finance's $260,316,000 of outstanding 7¼% notes due 2018; and

• Braskem Finance's $584,316,000 of outstanding 7% notes due 2020.

The 8% notes and 7¼% notes have an acceptance priority level of one, while the 7% notes have an acceptance priority level of two.

Credit Suisse is also planning to solicit consents to amend the indenture of the 7% notes to eliminate substantially all of the restrictive covenants, as well as various events of default and related provisions.

According to a press release from Braskem Finance, the company anticipates a total consideration of $1,145 for the 8% notes, $1,167.50 for the 7¼% notes and $1,115 for the 7% notes. The amounts are for each $1,000 principal amount of notes tendered and accepted.

Participating holders will also receive accrued interest.

The dealer managers and solicitation agents are Credit Suisse (800 820-1653 or 212 538-2147), BB Securities Ltd. (44 20 7367-5803), Banco BTG Pactual SA, Cayman Branch (212 293-4600), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and Standard Chartered Bank (44 20 7885-5739).

Braskem is a Sao Paulo, Brazil-based petrochemical company.

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