By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, June 28 – Suzano Austria GmbH priced $1 billion of 3.125% global notes due Jan. 15, 2032 (BBB-/BBB-) guaranteed by Suzano SA, according to a market source.
The notes priced at a spread of 180 basis points over Treasuries compared to talk in the Treasuries plus low 200 bps area.
The notes will bear interest at the 3.125% fixed rate initially. That rate will increase by 12.5 bps on July 16, 2026, unless the company meets its women in leadership positions sustainability performance target; and will step up by a further 12.5 bps on July 16, 2027, unless the company meets its industrial water withdrawal intensity sustainability performance target.
The notes will be callable in whole at par.
BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Rabo Securities USA, Inc., Scotia Capital (USA) Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs Bank Europe SE, MUFG and SMBC Nikko Securities America, Inc. are the joint bookrunners. BNP Paribas, BofA Securities, JPMorgan, Mizuho Securities, Rabo Securities and Scotiabank are also global coordinators.
Proceeds will be used to repay existing debt, including maturing obligations under some export pre-payment agreements and the 5¼% senior notes due May 2024 issued by Fibria Overseas Finance Ltd., and otherwise for general corporate purposes.
The issuer is a Vienna-based subsidiary of Suzano. The Brazilian pulp and paper company is based in Sao Paulo.
| Issuer: | Suzano Austria GmbH
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| Guarantor: | Suzano SA
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| Issue: | Global notes
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| Amount: | $1 billion
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| Maturity: | Jan. 15, 2032
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Rabo Securities USA, Inc., Scotia Capital (USA) Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs Bank Europe SE, MUFG and SMBC Nikko Securities America, Inc.
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| Coupon: | 3.125% initially, increases by 12.5 bps on July 16, 2026, unless company meets women in leadership positions performance target; and will step up by a further 12.5 bps on July 16, 2027, unless company meets industrial water withdrawal intensity performance target
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| Spread: | Treasuries plus 180 bps
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| Call option: | In whole at par
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| Pricing date: | June 28
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| Ratings: | S&P: BBB-
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| Fitch: BBB-
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| Talk: | Treasuries plus low 200 bps area
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