Odebrecht cancels seven note series upon closing reorganization plans

By Marisa Wong

Los Angeles, Jan. 21 – Odebrecht Finance Ltd. delivered notices to holders of the cancelation of seven series of notes guaranteed by Odebrecht Engenharia e Construcao SA, CNO SA and OECI SA.

Odebrecht canceled on Jan. 20 its $72,726,000 7% senior notes due 2020 (Cusip: G6710EAD2, 675758AC0) issued under an indenture dated Oct. 21, 2009; its $143.02 million 5 1/8% notes due 2022 (Cusip: G6710EAK6, 675758AH9) issued under an indenture dated June 26, 2012; its $101,561,000 6% notes due 2023 (Cusip: G6710EAG5, 675758AG1) issued under an indenture dated April 5, 2011; its $518.6 million 4 3/8% notes due 2025 (Cusip: G6710EAP5, 675758AL0) issued under an indenture dated April 25, 2013; its $500 million 5¼% notes due 2029 (Cusip: G6710EAQ3, 675758AM8) issued under an indenture dated June 27, 2014; its $840.15 million 7 1/8% notes due 2042 (Cusip: G6710EAL4, 675758AJ5) issued under an indenture dated June 26, 2012; and its $750 million 7½% perpetual notes (Cusip: G6710EAF7, 675758AF3) issued under an indenture dated Sept. 14, 2010.

The cancelation of the notes is a result of the closing of Odebrecht Finance’s judicial reorganization plan approved by the general creditors meeting on Sept. 4 and confirmed on Nov. 11 by the First Bankruptcy Court of the State of Sao Paulo and the extrajudicial reorganization plan of Odebrecht Engenharia, CNO and OECI filed on Aug. 19 and confirmed on Oct. 26 by the First Bankruptcy Court of the State of Sao Paulo to restructure the obligations of Odebrecht Engenharia, CNO and OECI in respect of the old notes.

Under the Odebrecht Finance restructuring and the Odebrecht Engenharia restructuring, the obligations of the companies with respect to the old notes were canceled, and the Odebrecht Engenharia group will issue to holders of the old notes their respective pro rata shares of (i) a new series of senior notes, in each case in an aggregate principal amount equal to 45% of the sum of outstanding principal and unpaid interest accrued under the corresponding series of old notes and (ii) a participatory debt instrument entitling holders to a specified percentage of future distributions to be made by OEC SA.

As of Jan. 20, the old notes ceased to be listed on the Luxembourg Stock Exchange.

Odebrecht is a construction engineering company based in Rio de Janeiro. The company filed Chapter 15 bankruptcy under case number 20-12741.

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