Vale prices tender offer for 6¼% notes, announces results

By Wendy Van Sickle

Columbus, Ohio, June 13 – Brazil’s Vale SA and Vale Overseas Ltd. announced pricing of their cash tender offer for any and all of Vale Overseas’ $745,441,000 outstanding of 6¼% guaranteed notes due 2026 (Cusip: 91911TAP8).

The company will pay a consideration of $1,041.55 per $1,000 note, determined using the 3 5/8% U.S. Treasury due May 15, 2026 and a fixed spread of 58 basis points.

Pricing was set at 11 a.m. ET on June 13.

Holders will also receive accrued interest.

In a press release late in the day, the company detailed noteholder response.

Noteholders tendered $274,819,000 of their notes and all will be accepted.

Using guaranteed delivery methods, $11,129,000 of notes were tendered.

The offer was announced on June 7 along with a waterfall tender offer for four notes, capped at $500 million.

The withdrawal deadline and expiration deadline for the any-and-all offer was 5 p.m. ET on June 13.

Under guaranteed delivery procedures, notes tendered using that method are due by 5 p.m. ET two days after the expiration date with settlement expected on June 16 for notes tendered either way.

BMO Capital Markets Corp. (212 702-1840, 833 418-0762), Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), J.P. Morgan Securities LLC (212 834-4045, 866 834-4666) and Scotia Capital (USA) Inc. (212 225-5559, 833 498-1660) are the dealer managers.

D.F. King & Co., Inc. is the information and tender agent (800 591-8263, 212 269-5550, vale@dfking.com).

Vale is a Rio de Janeiro-based metals and mining company.

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