CVRD in Largest-Ever Latin American Corporate Bond

November 16, 2006

Cleary Gottlieb is representing long-time client Companhia Vale do Rio Doce (CVRD) on its offering of $3.75 billion of bonds, which priced November 16. The offering is reportedly the largest corporate bond offering ever by a Latin American borrower.

CVRD is the world’s largest iron ore miner, and in October it acquired Inco Limited, the world’s second largest nickel producer, in an all-cash hostile tender offer. To finance that acquisition, CVRD obtained an $18 billion bridge loan, by far the largest loan commitment ever to a Latin American corporate borrower. Cleary Gottlieb represented CVRD in the tender offer and the bridge loan.

The bond offering is part of CVRD’s program to refinance the $14.6 billion it drew under the bridge loan. There are two tranches: $1,250,000,000 of 6.25% Guaranteed Notes due 2017 and $2,500,000,000 of 6.875% Guaranteed Notes due 2036.

The offering was SEC-registered, using an automatic shelf registration statement filed on the morning the deal was launched.