Brazil's Odebrecht tenders for 7% notes due 2020, 6% notes due 2023

By Susanna Moon

Chicago, Oct. 23 - Construtora Norberto Odebrecht SA began a tender offer for its affiliate Odebrecht Finance Ltd.'s $500 million of 7% senior notes due 2020 and $800 million of 6% notes due 2023. The offer was announced Oct. 22.

As noted before, the company will repurchase any and all of the 7% notes. The amount of 6% notes accepted for purchase will be limited to $450 million less the principal amount of 7% notes accepted for purchase and will be capped at $300 million.

For each 1,000 principal amount, the total purchase price will be $1,172.50 for the 7% notes and $1,190.00 for the 6% notes. The total payments include a $30.00 consent fee for the 7% notes and a $30.00 early tender payment for the 6% notes.

The tender offer and consent solicitation for the 7% notes will end at 5 p.m. ET on Oct. 31, and holders who tender by the end of the offer will receive the total purchase price, which includes a consent payment.

The tender offer for the 6% notes will end at midnight ET on Nov. 19. Those who tender their notes by 5 p.m. ET on Oct. 31, the early tender date, will receive the total payment including the early tender premium. Those who tender after the early deadline will receive the total payment less the early tender premium, according to a company press release.

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

As previously noted, the company is soliciting consents of the holders of the 7% notes to amend the notes to eliminate substantially all of the restrictive covenants and events of default. The proposed amendments require the consents from holders of at least a majority of the outstanding notes.

Holders who tender their notes must also provide consents.

The consent offer is conditioned on receiving consents for a majority of the notes.

The company priced a $450 million add-on to its 7 1/8% notes due June 26, 2042 at 116.266 to yield 5.95% on Oct. 23.

Odebrecht is an engineering, construction, chemical and petrochemical conglomerate based in Salvador da Bahia, Brazil.

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