Fibria Celulose Prices Public Offering of 4% Notes Due 2025 for USD600 Million

Published: Nov 09 2017
Deal Summary

Fibria Celulose S.A (formerly Votorantim Celulose e Papel S.A.), a pulp and paper company, through its financial arm Fibria Overseas Finance Ltd. (issuer), has completed the public offering of 4% notes due January 14, 2025, for gross proceeds of USD600 million. The bonds were issued at 98.474% of the principal amount plus accrued interest, if any, from November 14, 2017, and will yield 4.29% upon maturity.

Interest on the notes will be paid semi-annually on January 14 and July 14 of each year, commencing on January 14, 2018. The notes are guaranteed by the company.

At any time before November 14, 2024, either the issuer or the company may, at its option, redeem the notes, in whole or in part at any time and from time to time, by paying the greater of (i) 100% of the principal amount of the notes and (ii) the applicable make-whole amount discounted at the treasury rate plus 30 basis points, in each case, plus accrued and unpaid interest on the principal amount of the notes being redeemed to (but excluding) the date of redemption. On or after the par call date, the issuer or the company may, at its option, redeem the notes, in whole or in part at any time and from time to time, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest on the principal amount of the notes being redeemed to (but excluding) the date of redemption.

Earlier, the company agreed to issue 4% notes due 2025, in a public offering.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC., Merrill Lynch, Pierce, Fenner & SmithIncorporated, Mizuho Securities USA LLC., Scotia Capital (USA) Inc. are acting as joint book running managers, while White & Case LLP is acting as legal advisor to the company for the offering.

The company intends to use the proceeds to repay indebtedness and the remainder, if any, for general corporate purposes.

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