Brazil's Votorantim gets consents for 6.625%, 7.75% notes, extends expiration for 7.875% notes

By Marisa Wong

Madison, Wis., Sept. 21 - Votorantim Participacoes SA said two of its financing subsidiaries have received the necessary consents to amend their notes while a third has extended the expiration date for its consent solicitation.

Voto-Votorantim Overseas Trading Operations IV Ltd. received the consents needed to amend its $400 million of outstanding 7.75% notes due 2020, and Voto-Votorantim Overseas Trading Operations V Ltd. received the consents needed to amend its $1 billion of outstanding 6.625% senior notes due 2019.

Voto-Votorantim Overseas Trading Operations III Ltd. is extending the expiration date for soliciting consents from holders of its $280.2 million of outstanding 7.875% notes due 2014. The expiration date is now 5 p.m. ET on Sept. 29, unless further extended.

As of 5 p.m. ET Sept. 20, the original expiration date, Voto-Votorantim III had received nearly enough consents to implement the proposed amendments.

The solicitation for each series of notes is subject to receiving consents from holders of 50% of that series.

All holders of Voto-Votorantim III notes who have previously delivered consents do not need to redeliver consents or take any other action in response to the extension.

The terms and conditions of the consent solicitation of the Voto-Votorantim III notes remain unchanged.

As announced on Sept. 9, each of the issuers is seeking consents to amend the note indentures to, among other things, substantially conform certain provisions to the corresponding provisions in the indenture dated April 5, 2010 governing Voto-Votorantim Ltd.'s $750 million 6.75% senior notes due 2021 and the indenture dated April 28, 2010 governing Voto-Votorantim Ltd.'s €750 million 5.25% senior notes due 2017.

The amendments will result in a substantially identical covenant package for the company's five outstanding series of senior notes, providing more flexibility and being less restrictive.

The amendments will also allow the respective issuers of the notes to be substituted under certain conditions.

Holders who deliver consents will receive a cash payment of $1.50 per $1,000 principal amount.

The information agent is D.F. King & Co., Inc. (212 269-5550 or 800 628-8536). The solicitation agent is Bank of America Merrill Lynch (888 292-0070 or 646 855-3401).

Votorantim is a Sao Paulo, Brazil-based privately held conglomerate.

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