Brazil’s Suzano accepts early tenders for $309.21 million 5 7/8% notes

By Susanna Moon

Chicago, Nov. 20 – Suzano Trading Ltd. said investors had tendered $309,214,000 principal amount of its $499.47 million principal amount of outstanding 5 7/8% senior notes due 2021 as of 5 p.m. ET on Nov. 17, the early tender date.

The issuer began tendering for up to $300 million principal amount of the notes on Nov. 6.

The company is also soliciting consents to eliminate substantially all restrictive covenants and some events of default contained in the note indenture.

On Monday Suzano raised the tender cap to the amount tendered by the early deadline and accepted all of the notes for purchase with settlement set for Tuesday, according to a company update.

The total cash payment for the early tendered notes will be $337,043,260, including the early premium but excluding accrued interest.

As previously announced, the total purchase price will be $1,090 for each $1,000 principal amount of notes tendered by the early tender deadline.

The total amount includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline.

Holders may not tender notes without delivering consents or give consents without tendering their notes.

Those who tender after the early deadline will receive the total payment less the early premium.

The issuer also will pay accrued interest to but excluding the settlement date.

The tender is set to remain open until 11:59 p.m. ET on Dec. 4.

D.F. King & Co., Inc. (212 269-5550, 800 967-7574 or suzano@dfking.com) is the tender agent and information agent. J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279), Santander Investment Securities Inc. (855 404-3636 or 212 940-1442), BB Securities Ltd. (+44 20 7367 5803 or bbssettlements@bb.com.br), Banco Bradesco BBI SA (+55 11 3847 5219) and SMBC Nikko Securities America Inc. (888 868-6856 or 212 224-5417) are the dealer managers and solicitation agents.

Suzano is a manufacturer and trader of short-fiber pulp eucalyptus and paper based in Sao Paulo.

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