Braskem sets pricing in tender offer for 12½% notes

By Laura Lutz

Des Moines, Sept. 25 - Braskem SA announced pricing in its tender offer for all of its $275 million outstanding 12½% notes due 2008.

The company said it will pay $1,145.48 per $1,000 principal amount of tendered notes, plus accrued interest up to but excluding the settlement date.

That amount is based on the present value on the settlement date of $1,000 plus scheduled interest payments through maturity on Oct. 15, 2008, discounted using the bid-side yield of the 3 1/8% U.S. Treasury note due Oct. 15, 2008 plus 45 basis points, minus accrued interest up to but excluding the settlement date.

The price includes a $20 early tender premium for notes that were tendered by the early tender deadline on Sept. 18.

Notes tendered after the early deadline will receive the same amount, less the early tender premium.

The company reported that it had received tenders for $183.855 million, or about 66.9%, of the outstanding notes by the early tender deadline.

The tender offer was announced on Aug. 29.

The offer expires at 5 p.m. ET on Sept. 27.

ABN AMRO Bank NV, London Branch and Citigroup Global Markets Inc. are the dealer managers for the offer. D.F. King & Co., Inc., (800 290-6431or collect 212 269-5550) is the information agent.

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

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