Suzano in Concurrent $400 Million and $150 Million Offerings
September 27, 2017
Cleary Gottlieb represented Suzano Papel e Celulose S.A. (Suzano) in the reopening of $200 million 5.750 percent senior notes due 2026 and $200 million 7.000 percent senior notes due 2047, both issued by its subsidiary Suzano Austria GmbH and guaranteed by Suzano.
The offering was the first time that the issuer has tapped the notes, and Cleary had also represented the issuer in connection with each offering.
The initial purchasers of the additional notes were J.P. Morgan Securities LLC, Santander Investment Securities Inc., BB Securities Limited, Itau BBA USA Securities, Inc. and Mizuho Securities USA LLC. The transaction priced on September 5, 2017, and closed on September 12, 2017.
Suzano intends to use the net proceeds from the sale of the 2026 notes for eligible green projects, and the net proceeds of the 2047 notes will be used to fund a concurrent tender offer to purchase up to $150 million of 5.875 percent senior notes due 2021 issued by Cayman subsidiary Suzano Trading Ltd., and the remainder, if any, to refinance debt and general corporate purposes. The tender offer launched on September 5, 2017, with an early settlement on September 20, 2017, and it will expire on October 2, 2017. The dealer managers for the tender offer were J.P. Morgan Securities LLC, Santander Investment Securities Inc., BB Securities Limited, Itau BBA USA Securities, Inc. and Mizuho Securities USA LLC.
Suzano is one of the largest pulp and paper producers in Latin America, present in the industry for over 90 years. It operates mainly in the pulp (paper grade and fluff) and paper (paperboard and printing and writing) segments.