By Cady Vishniac
Detroit, Nov. 17 – Suzano SA priced an add-on of $500 million to its $750 million of 3¾% senior notes due Jan. 15, 2031 (BBB-/BBB-) through Austrian subsidiary Suzano Austria GmBH, according to multiple filings with the Securities and Exchange Commission.
The notes have an interest step-up of 25 basis points to 4% on July 16, 2026 unless sustainability performance targets are met in 2025.
Prior to Oct. 15, 2030, the notes include a call option with a make-whole premium of Treasuries plus 50 bps. After this date, they may be called for par plus accrued interest.
The reopening price was 105.51, plus accrued interest from Sept. 20 up to but excluding the settlement date, which is expected to be Nov. 19. The yield is 3.1%.
BofA Securities, Inc. and J.P. Morgan Securities LLC are global coordinators.
Banco Bradesco BBI SA, Banco Safra SA’s Cayman Islands Branch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Itau BBA USA Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Rabo Securities USA, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., XP Investimentos Corretora de Cambio and Titulos e Valores Mobiliarios SA are the joint bookrunners.
The notes have environmental performance indicators associated with a goal of reducing carbon emissions by the Suzano by 2025 and are sustainability-linked bonds according to the principles of the International Capital Markets Association. An independent evaluation of the notes was made by ISS-ESG.
Proceeds will be used for repaying debt and rebuilding the cash position over debts maturing during the next periods as determined by the company’s debt management strategy.
Suzano Austria is a Vienna-based subsidiary of Suzano. The 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: | Senior notes
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| Amount: | $500 million add-on
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| Maturity: | Jan. 15, 2031
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| Bookrunners: | BofA Securities, J.P. Morgan, Banco Bradesco BBI SA, Banco Safra SA’s Cayman Islands Branch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Itau BBA USA Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Rabo Securities USA, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., XP Investimentos Corretora de Cambio and Titulos e Valores Mobiliarios SA
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| Coupon: | 3¾% initial rate, steps up to 4% on July 16, 2026 unless sustainable targets are reached in 2025
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| Price: | 105.51
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| Yield: | 3.1%
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| Spread: | Treasuries plus 219.9 bps
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| Call option: | Par plus a make-whole premium of Treasuries plus 50 bps prior to Oct. 15, 2030, par call thereafter
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 19
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| Ratings: | S&P: BBB-
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| Fitch: BBB-
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| Total issue size: | $1.25 billion
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