Gerdau Trade’s $650 Million Notes Offering

BMA-Barbosa Müssnich Aragão, Shearman & Sterling and Stocche Forbes advised on the transaction

Gerdau Trade, a wholly owned subsidiary of Gerdau S.A., finalized its Rule144A/Regulation S $650 million bond offering

Gerdau Trade is a wholly owned subsidiary of Gerdau S.A., an international steel company and the largest producer of long-rolled steel in Brazil. The bonds pay interest at a rate of 4.875% per annum due 2027 (the “New Bonds”).

The new issuance was part of an overall liability management transaction in which Citigroup and Santander as principal, in an “intermediated tender offer,” offered to purchase, for cash, up to an aggregate maximum amount of $640 million 7% bonds due 2020 of Gerdau Holdings Inc., 5.75% bonds due 2021 of GTI, and 5.893% bonds due 2024 of GHI and GTL Trade Finance Inc. (collectively, the “Old Bonds”), which were subsequently resold to Gerdau for an agreed amount of New Bonds.

BMA-Barbosa Müssnich Aragão advised Gerdau with Paulo Cezar Aragão (Picture), Rodolfo Constantino de Tella, Alexandre Lindenberg and Juliana Monnerat.

Shearman & Sterling advised Citigroup Global Markets and Santander Investment Securities as initial purchasers with a team including Stuart Fleischmann (New York-Capital Markets); counsel Jeffrey Tate (Washington, DC-Tax); and associates Flavio Averbug (New York-Capital Markets); Antonio Herrera Cuevas (San Francisco-Capital Markets) and Michael Daly (Washington, DC-Tax).

In Brazil, Stocche Forbes Advogados advised the initial purchasers with Marcos Ribeiro (Picture),  Victor Manso and Ana Flavia Chaves.

 

Involved fees earner: Marcos Canecchio Ribeiro – Stocche Forbes Advogados; Victor Manso Roman – Stocche Forbes Advogados; Ana Flávia Chaves Cândido da Silva – Stocche Forbes Advogados; Paulo Cezar Aragão – Barbosa, Müssnich & Aragào; Rodolfo Constantino de Tella – Barbosa, Müssnich & Aragào; Juliana Monnerat Cordeiro – Barbosa, Müssnich & Aragào; Alexandre Roscoe Lindenberg – Barbosa, Müssnich & Aragào; Stuart Fleischmann – Shearman & Sterling; Flavio Averbug – Shearman & Sterling; Antonio Herrera Cuevas – Shearman & Sterling; Jeffrey Tate – Shearman & Sterling; Michael Daly – Shearman & Sterling;

Law Firms: Stocche Forbes Advogados; Barbosa, Müssnich & Aragào; Shearman & Sterling;

Clients: Citigroup Global Markets Ltd; Santander Securities ; Gerdau S.A.;

 

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Author: Ambrogio Visconti.