Gerdau SA on Oct. 4 launched a cash tender offer to buy back up to US$500 million of its 2021, 2020 and 2024 bonds.
The Brazilian steelmaker has US$1.25 billion outstanding of 5.750% bonds due 2021, US$638.6 million of 7.000% bonds due 2020, and US$1.17 billion of 5.893% bonds due 2024.
Under the offer terms, 2021 bonds will be given priority over the 2020 and 2024 bonds, while the buyback for the 2024 bonds will be capped at US$75 million.
Along with accrued and unpaid interest, Gerdau will pay US$1,060 per US$1,000 principal amount of 2021 bonds, US$1,066.25 per US$1,000 principal amount of 2020 bonds and US$1,046.25 per US$1,000 principal amount of 2024 bonds.
The company will also pay an early tender premium of US$30 per US$1,000 principal amount of bonds submitted by Oct. 18.
The tender offer is scheduled to close Nov. 1.
Gerdau outlined a management shake-up in late August, with Gustavo Werneck named as its new CEO.