Braskem gives early tender results in Credit Suisse's repurchase offer

By Susanna Moon

Chicago, April 30 - Braskem Finance Ltd., a subsidiary of Braskem SA, announced the early tender results of Credit Suisse Securities (USA) LLC's cash tender offers for three series of notes.

Investors had tendered the following amounts of Braskem Finance notes by 5 p.m. ET on April 29, the early tender date:

• $12,715,000 principal amount, or about 15.74%, of the $85,093,000 outstanding principal amount of 8% notes due 2017;

• $25,804,000 principal amount, or about 14.51%, of $260,316,000 of outstanding 7¼% notes due 2018; and

• $200,596,000 principal amount, or about 34.48%, of $584,316,000 of outstanding 7% notes due 2020.

As announced on April 16, Credit Suisse is offering to purchase any and all of the 8% notes and 7¼% notes, and up to an amount of the 7% notes equal to $250 million less the total amount of the first-priority notes.

Because the payment for the 7% notes would exceed the maximum tender amount, the notes will be purchased on a prorated basis using a factor of 89.42%, according to a company press release.

Accordingly, the company plans to purchase $184,139,000 principal amount of the 7% notes on the early settlement date of April 30 and no more of the 7% notes tendered after the early deadline.

The company also is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants, as well as various events of default and related provisions.

The proposed amendments require the consents of holders of at least a majority of the outstanding notes. Holders who tender their notes will also be providing consents.

The consent solicitation will be terminated if the required consents are not obtained or the 7% notes are subject to proration, and in each case, the amendments to the 7% notes will not become effective. The company said it reserves the right, however, to accept and purchase 7% notes under the concurrent tender offer.

The maximum tender amount for the 7% notes is currently insufficient to permit the company to receive the needed consents.

The total purchase price for each $1,000 principal amount will be $1,145 for 8% notes, $1,167.50 for 7¼% notes and $1,115 for 7% notes tendered by the early tender date, according to a previous press release.

The total amount includes an early tender payment of $50.00 per $1,000 principal amount.

Those who tender after the early date will receive the total amount less the early payment.

Holders also will receive accrued interest up to but excluding the settlement date, which will be April 30 for early tendered notes.

The tender offer is slated to continue until midnight ET on May 13.

The dealer managers and solicitation agents are Credit Suisse (800 820-1653 or 212 538-2147), BB Securities Ltd. (44 20 7367-5803), Banco BTG Pactual SA, Cayman Branch (212 293-4600), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and Standard Chartered Bank (44 20 7885-5739).

D.F. King & Co., Inc. (800 967-7635, 212 269-5550 collect or Braskem@dfking.com) is the information agent.

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

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