Votorantim gives early results, upsizes capped tender offer for 7¼% notes due 2041

By Rebecca Melvin

Concord, N.H., May 27 – Votorantim Cimentos International SA (VCI), a wholly owned subsidiary of Brazil’s Votorantim Cimentos SA (VCSA), announced the early results and an upsizing of its cash tender offer for its 7¼% senior notes due 2041 (Cusip: 92911QAA5, US92911QAA58), according to a press release.

The offer has been upsized to up to $221,789,220 from up to $200 million.

As of 5 p.m. ET on May 26, $195,335,000 of notes had been validly tendered and not validly withdrawn. There are $546,729,000 of the notes outstanding. They were initially issued in two parts in 2012 for an aggregate total of $1.25 billion and are guaranteed by VCSA and Votorantim SA.

With pricing based on the 2 3/8% U.S. Treasury due Feb. 15, 2042, a reference yield of 3.226% and a fixed spread of 281 basis points, the total consideration is $1,135.43 per $1,000 principal amount.

The total consideration includes an early tender premium of $30 per $1,000 principal amount payable only to holders who tender by Thursday. The offer expires at 11:59 p.m. ET on June 10.

D.F. King & Co., Inc. (212 269-5550, 800 628-8538 or vci@dfking.com) is the information agent.

BofA Securities, Inc. (646 855-8988 or 888 292-0070), Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), HSBC Securities (USA) Inc. (212 525-5552 or 888 HSBC-4LM), Itau BBA USA Securities, Inc. (888 770-4828 and 212 710-6749) and UBS Securities LLC (203 719-4210 and 888 719-4210) are the dealer managers.

Votorantim Cimentos is a cement company based in Sao Paulo, Brazil.

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