Brazil's Cosan to call 8¼% perpetuals, begins consent solicitation

By Angela McDaniels

Tacoma, Wash., April 5 - Cosan SA Industria e Comercio is soliciting consents to amend the indenture governing its 8¼% perpetual notes issued in 2006, according to a company news release.

The company plans to issue a call notice for the notes by April 15. Cosan said that irrespective of whether a holder of the notes decides to consent to the proposed amendments, the notes will be redeemed at par plus accrued interest on May 15.

The consents would allow Cosan to permit its subsidiary Cosan Cayman Ltd. to call the notes, remove the trustee's obligation to automatically cancel any notes that are called and provide that once holders have been paid, any notes held by Cosan Cayman will remain outstanding.

The consent solicitation will expire at 5 p.m. ET on April 29. The record date is 5 p.m. ET on April 4.

Cosan Cayman is offering a consent fee of $2.50 per $1,000 principal amount of notes.

With respect to consents received by a beneficial investor with holdings in an aggregate principal amount of notes less than or equal to $250,000, Cosan Cayman will pay, if applicable, any relevant retail processing dealer a cash payment equal to $1.25 per $1,000 principal amount of notes in respect of which such letter of consent has been delivered.

The solicitation agent is Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-1057). The information agent is D.F. King & Co., Inc. (212 269-5550 or 800 829-6551).

Cosan is an ethanol and sugar company based in Sao Paulo, Brazil.

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