Voto-Votorantim receives tenders for $91.8 million of 7 7/8% notes

By Jennifer Chiou

New York, Nov. 3 - Voto-Votorantim Overseas Trading Operations III Ltd. announced it obtained tenders from holders of $91.8 million of notes in the offer for any and all of its $300 million of 7 7/8% notes due 2014.

The offer ended at 5 p.m. ET on Nov. 2. It began on Oct. 25.

For each $1,000.00 principal amount of notes, the company said it will pay $1,103.28, which is the sum of the present value on the settlement date for the tender of $1,000.00 and the present value of the accrued interest to maturity, discounted using the bid-side yield of the 4.875% Treasury due Aug. 15, 2016 plus a fixed spread of 144 basis points, minus accrued interest up to but excluding the settlement date.

The notes are guaranteed by Votorantim Participacoes SA, Votorantim Celulose e Papel SA, Votorantim Cimentos Brasil Ltda., Votorantim Metais Zinco SA and Votorantim Metais Niquel SA.

The company previously said that JPMorgan Chase Bank, NA has committed to make a bridge loan to allow it to purchase the tendered notes.

The company is looking to reduce higher-coupon indebtedness.

J.P. Morgan Securities Inc. is the dealer manager (call collect 212 834-7279 or 800 846-2874). D.F. King, Inc. is the information agent (call collect 212 269-5550 or 800 290-6429).

Based in São Paulo, Brazil, the company has operations in cement, pulp and paper, aluminum, zinc and nickel, chemicals, frozen concentrated orange juice, energy and banking.

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