Brazil’s Vale gets no more tenders for 4 3/8% notes in capped offer

By Susanna Moon

Chicago, April 12 – Vale SA said holders had tendered no more its $2.25 billion of 4 3/8% guaranteed notes due 2022 in the offer that had been oversubscribed as of the early deadline at 5 p.m. ET on March 27.

The tender for the 4 3/8% notes had been set to end at 11:59 p.m. ET on April 11.

As announced March 28, the company received tenders for $1,144,879,000 of the notes by the early deadline and accepted early tenders for $780,951,000 using a scaling factor of 68.30%.

The offer price for the 4 3/8% notes is $1,036.50 per $1,000 principal amount, which includes an early tender premium of $30.00 per $1,000 principal amount.

As announced March 14, Vale was tendering for all of its $1.25 billion of 5 7/8% guaranteed notes due 2021 and a capped amount of its 4 3/8% guaranteed notes.

The cap on the tender was set at $1.75 billion less the $969,049,000 of 5 7/8% guaranteed notes due 2021 that were accepted for purchase in Vale’s tender for those securities.

Early settlement occurred on March 28.

Vale previously announced on March 21 that holders had tendered $968,349,000 of the 5 7/8% notes plus another $2,536,000 under guaranteed delivery procedures.

That offer ended at 5 p.m. ET on March 20.

Vale accepted for purchase all of the tendered notes at a purchase price of $1,086 per $1,000 plus accrued interest to but excluding the settlement date of March 22.

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

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3754), J.P. Morgan Securities LLC (212 834-7279 or 866 846-2874), Mizuho Securities USA LLC (212 205-7736 or 866 271-7403) and SMBC Nikko Securities America, Inc. (212 224-5417 or 888 868-6856) are dealer managers.

D.F. King & Co., Inc. (212 269-5550, 866 796-7184 or vale@dfkingltd.com) is information agent and depositary.

The tender offers are part of the company’s plans to repay $2,248,775,000 of debt, which also include a redemption.

The company previously said that the actions are in line with its strategy of “generating shareholder value, strengthening its balance sheet and reducing its indebtedness.”

Vale’s subsidiary, Vale Overseas Ltd., will redeem its $498,775,000 of outstanding 4 5/8% guaranteed notes due 2020 on April 17.

Vale Overseas will pay a make-whole premium for the securities.

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

© 2015 Prospect News.
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