Brazil’s USJ – Acucar gets needed consents under solicitation for PIK notes

By Wendy Van Sickle

Columbus, Ohio, Aug. 10 – USJ – Acucar e Alcool SA received the necessary consents prior to the expiry of its consent solicitation for its 9 7/8%/10½% senior secured PIK toggle notes due 2023, according to a news release on Tuesday.

The solicitation expired at 5 p.m. ET on Aug. 10 after being pushed out from 5 p.m. ET on Aug. 4.

To make the changes, USJ needed approval from holders of at least 66 2/3% of the notes for the collateral amendments and a majority for the payment amendment. The company said that threshold was met but did not say the exact amount of consents received.

As announced on July 28, the solicitation sought to amend some of the collateral and security provisions in the note indenture in order to “increase the viability of a more comprehensive restructuring” of the notes as envisaged in a restructuring support agreement made on June 8 with an ad hoc group of bondholders, according to a past news release.

The amendments also authorize the payment of the costs and expenses of the ad hoc group’s advisers.

D.F. King & Co., Inc. is the information and tabulation agent (866 620-2536, 212 269-5550 or usj@dfking.com).

USJ is a Sao Paulo, Brazil, producer of sugar and ethanol.

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