USJ – Acucar e Alcool pushes out election solicitation for notes

By Wendy Van Sickle

Columbus, Ohio, Feb. 14 – Brazil’s USJ – Acucar e Alcool SA extended its solicitation of recovery elections from holders of its 9 7/8% senior notes due 2019, 9 7/8%/12% senior secured PIK toggle notes due 2021 and 9 7/8%/10˝% senior secured PIK toggle notes due 2023, according to a Thursday press release.

The election deadline is now 5 p.m. ET on March 14, pushed back from 5 p.m. ET on Feb. 14 and, before that, from Jan. 27. The solicitation started on Dec. 28.

As previously reported, the purpose of the solicitation is to allow the holders to make a recovery election for the payment of their respective notes in connection with the company’s judicial restructuring plan.

Specifically, holders will decide whether to receive their claims through the alternative payment option or default recovery.

Holders who select the alternative payment option are expected to receive their claims under the notes in payment in kind, which will be effected through the exchange of the existing notes for an interest in a liquidating trust to be created by an ad hoc group of holders.

Holders who do not choose the alternative payment option or do not submit an election recovery will have their claims restructured and paid in accordance with default recovery.

Only holders of record as of 5 p.m. ET on Jan. 27 who are either (a) Rule 144A qualified institutional buyers or (b) Regulation S non-U.S. persons who are accredited investors under Regulation D are eligible to participate in the solicitation.

The election solicitation and the liquidating trust participating notes have not been, and will not be, registered with the Brazilian Comissao de Valores Mobiliarios. The notes are not offered or sold in Brazil, except in circumstances that do not constitute a public offering or unauthorized distribution under Brazilian laws and regulations.

D.F. King & Co., Inc. (866 797-6867, 212 269-5550 or usj@dfking.com) is the solicitation agent.

The sugar and ethanol producer is based in Sao Paulo, Brazil.

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