Fibria begins tender offer, consent bid for $548.6 million 6¾% notes

By Susanna Moon

Chicago, May 1 - Fibria Overseas Finance Ltd., a wholly owned subsidiary of Fibria Celulose, SA, said it began a tender offer for its $548,604,000 of 6¾% senior notes due 2021. The notes are unconditionally guaranteed by Fibria.

The company is also soliciting the 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 from 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, according to a company press release.

The purchase price will be $1,120 for each $1,000 principal amount, which includes a consent payment of $30.00 per $1,000 principal amount.

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

The tender offer and consent solicitation will end at midnight ET on May 8.

D.F. King & Co., Inc. (888 644-6071 or 212 493-6940 collect, +44 20 7920-9700 collect or at fibria@dfking.com) is the information agent. Citigroup Global Markets Inc. (800 558‑3745 or 212 723‑6106 collect), Credit Agricole Securities (USA) Inc. (866 807-6030 or +44 20 7214-7440 collect), Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527 collect), Goldman, Sachs & Co. (800 828-3182 or 212 902-6595 collect) and Banco Votorantim Securities, Inc. (212 339-7431 collect) are the dealer managers.

Fibria is a Sao Paulo, Brazil-based pulp and paper company.

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