Fitch lowers USJ – Acucar

Fitch Ratings said it downgraded the foreign- and local-currency long-term issuer default ratings of USJ – Acucar e Alcool SA to C from CC and long-term national scale rating to C(bra) from CC(bra).

Fitch also said it downgraded the company's $275 million senior unsecured notes due 2019 to C with recovery rating of RR4 from CC with recovery rating of RR4.

The downgrades follow news of the company’s private exchange offer for any and all of its outstanding 9 7/8% senior unsecured notes due 2019 for newly issued secured notes at 65% or 60% of the par value and unchanged tenor, the agency said.

According to the terms and conditions of the new notes, the company will have the option to defer coupon payments in 2016 and 2017 and pay accrued interest at maturity in 2019, Fitch said.

The conclusion of the debt-exchange offer and consent solicitation is conditioned upon the valid tender of at least 90% of the aggregate principal amount of the outstanding existing notes, the agency said.

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