Vale SA on Sept. 12 launched a cash tender offer to repurchase up to US$1 billion of debt.
The company capped the first pool at US$700 million, offering to buy its guaranteed 6.875% notes due 2039 and 2036, as well as its 7.20% debentures due 2032.
For the second pool, which was uncapped, Vale offered to purchase its guaranteed 6.250% notes due 2026, 8.250% notes due 2034 and 4.375% notes due 2022.
The 2039 notes have the highest priority in the offering, according to a Sept. 12 release. All tender offers include an early tender premium of US$50 per US$1,000 worth of notes validly tendered.
The early settlement date is Sept. 30 for notes validly tendered by Sept. 25. The buyback expires Oct. 9, subject to extension.
Banco Bradesco BBI SA, Itau BBA USA Securities Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are dealer managers while D.F. King & Co. Inc. is the tender and information agent.
