Brazil’s Gerdau gives late results of tender for three series of notes

By Mary-Katherine Stinson

Lexington, Ky., Dec. 6 – Gerdau SA announced it received tendered notes totaling $6,569,000 after the early deadline and before the final deadline of its offer to purchase for cash up to $500 million of three series of outstanding bonds, according to a press release on Monday.

Specifically, the bonds tendered and accepted by the expiration of the offer, 11:59 p.m. ET on Dec. 3, listed by acceptance priority, level were:

• $1.2 million of Gerdau Trade Inc.’s $428,242,000 outstanding 4¾% bonds due 2023 (Cusips: G3925DAB6, 37373WAB6) with pricing based on the 3/8% U.S. Treasury note due Oct. 31, 2023 plus 30 basis points, for a total consideration of $1,024.71 per $1,000 bond;

• $1,158,000 of Gerdau Holdings Inc.’s $202,735,000 outstanding 5.893% bonds due 2024 (Cusips: G24422AA8, 36249SAA1) with pricing based on the 1/8% U.S. Treasury note due Jan. 15, 2024 plus 50 bps, for a total consideration of $1,073.10 per $1,000 bond; and

• $4,211,000 of GTL Trade Finance Inc.’s $503,205,000 outstanding 4 7/8% bonds due 2027 (Cusips: G3925DAD2, 37373WAD2) with pricing based on the 1 1/8% U.S. Treasury note due Oct. 31, 2026 plus 175 bps, for a total consideration of $1,071.82 per $1,000 of notes.

There was a $200 million series limit for the last series, the 2027 notes. The offer was subject to proration if the tender cap had been exceeded or if the series cap for the 2027 bonds was exceeded.

Earlier, the company announced that noteholders had tendered $89,726,000 of the 2023 notes, $152,717,000 of the 2024 notes and $146,795,000 of the 2027 notes by the early deadline.

Accrued interest will also be paid.

Final settlement is expected on Dec. 7.

Pricing was set at 10 a.m. ET on Nov. 18.

The early deadline was 5 p.m. ET on Nov. 18 which was also the withdrawal deadline.

The early settlement date was Nov. 22.

Banco BTG Pactual SA – Cayman Branch (212 293-4600 or OL-DCM@btgpactual.com), BofA Securities, Inc. (646 855-8988 or 888 292-0070), Morgan Stanley & Co. LLC (212 761-1057 or 800 624-1808) and Santander Investment Securities Inc. (212 940-1442 or 855 404-3636) were the dealer managers.

D.F. King & Co. (866 207-3636, 212 269-5550 or gerdau@dfking.com) was the information and tender agent.

Gerdau is a steel producer based in Porto Alegre, Brazil.

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