Votorantim, Companhia Brasileira de Aluminio complete tender offer

By Jennifer Chiou

New York, June 11 – Votorantim Industrial SA announced the close of its cash tender offer for any and all of its $325,326,000 of 6 5/8% senior notes due 2019, while Voto-Votorantim Overseas Trading Operations IV Ltd. also completed the offer for any and all of its $316,903,000 of 7¾% notes due 2020 and Companhia Brasileira de Aluminio did the same in its cash offer for any and all of its $417,246,000 of 6¾% senior notes due 2021.

The 6 5/8% notes are unconditionally guaranteed by Votorantim Participacoes SA, Votorantim Cimentos SA and Companhia Brasileira de Aluminio, and the 6¾% notes are unconditionally guaranteed by Votorantim Participacoes and Votorantim Cimentos.

The offers ended at 12:01 a.m. ET on June 11.

The companies received tenders for $43,878,000, or 13.5%, of the 6 5/8% notes, $112,243,000, or 35.4%, of the 7¾% notes, and $77,906,000, or 18.6%, of the 6¾% notes.

Voto-Votorantim and Companhia Brasileira de Aluminio also solicited consents to amend their note indentures to eliminate substantially all of the restrictive covenants, as well as various events of default and related provisions.

The companies were seeking consents from holders of a majority of each series, and they did not meet the minimum tender condition.

For each $1,000 principal amount, Votorantim will pay $1,165 for the 6 5/8% notes, Voto-Votorantim $1,227.50 for the 7¾% notes and Companhia Brasileira will pay $1,192.50 for the 6¾% notes, the last two including a $30.00 consent payment.

The companies will also pay accrued interest.

D.F. King & Co., Inc. was the information agent (800 967-4604 or call collect 212 269-5550 or 44 207 920 9700; voto@dfking.com).

Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106), Mitsubishi UFJ Securities at (877 744-4532 or call collect 212 405-7481), Morgan Stanley (800 624-1808 or all collect 212 761-1057) and Banco Votorantim at (212 339-7390) were the dealer managers.

The companies are subsidiaries of Votorantim Participacoes, a mining, metals and paper group based in Sao Paulo. They launched the offers on June 4.

© 2015 Prospect News.
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