USINAS SIDERÚRGICAS DE MINAS GERAIS S.A. - USIMINAS ANNOUNCES EARLY RESULTS OF CASH TENDER OFFER AND INCREASE IN MAXIMUM TENDER AMOUNT OF OUTSTANDING 5.875% SENIOR NOTES DUE 2026
BELO HORIZONTE, Brazil, Sept. 24, 2024 /PRNewswire/ -- Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas (the "Offeror"), a corporation (sociedade por ações) organized under the laws of Brazil, announces the early results of its previously announced cash tender offer (the "Tender Offer"), which maximum tender amount it is increasing from US$285.0 million to US$320.0 million in aggregate principal amount (the "Maximum Tender Amount") of outstanding 5.875% senior notes due 2026 (the "Notes"), issued by Usiminas International S.à r.l. (the "Issuer"), a private limited liability company (société à responsabilité limitée) organized under the laws of Luxembourg. The Notes are fully, unconditionally and irrevocably guaranteed by the Offeror.
The Tender Offer is made by the Offeror on behalf of the Issuer, upon the terms and subject to the conditions set forth in an offer to purchase, dated September 10, 2024 (the "Offer to Purchase"), as amended by this press release. The Offeror informs that the Financing Condition has been fully satisfied. Any capitalized term used but not defined in this press release has the respective meaning set forth in the Offer to Purchase.
The following table sets forth the material pricing terms of the Tender Offer:
Title of Security |
CUSIP / ISIN |
Principal Amount Outstanding |
Principal Amount Accepted for Purchase |
Principal Amount Outstanding Following the Early Settlement Date |
Early Tender Premium(1) |
Tender Offer Consideration(2) |
Total Consideration(3) |
5.875% Senior Notes due 2026 |
Rule 144A: 91734JAA8 / US91734JAA88 Regulation S: L95806AA0 / USL95806AA06 |
US$750,000,000 |
US$320,000,000 |
US$430,000,000 |
US$30.00 |
US$972.50 |
US$1,002.50 |
(1) |
Per US$1,000 principal amount of Notes validly tendered at or prior to the Early Tender Date and accepted for purchase. |
|||||||
(2) |
The amount that would have been paid for each US$1,000 principal amount of Notes validly tendered after the Early Tender Date but at or prior to the Expiration Date and accepted for purchase. In addition, Accrued Interest would have been paid. As the aggregate principal amount of Notes validly tendered (and not validly withdrawn) by Holders as of the Early Tender Date exceeds the Maximum Tender Amount, the Offeror will not accept for purchase any Notes tendered after the Early Tender Date. |
|||||||
(3) |
The amount to be paid for each US$1,000 principal amount of Notes validly tendered at or prior to the Early Tender Date and accepted for purchase. The Total Consideration includes the Tender Offer Consideration plus an Early Tender Premium of US$30.00 for each US$1,000 principal amount of Notes. In addition, Accrued Interest will be paid. |
The Tender Offer will expire at 5:00 p.m., New York City time, on October 8, 2024, unless extended by the Offeror (such time and date, as it may be extended, the "Expiration Date"). The deadline for Holders to validly tender (and not validly withdraw) Notes in the Tender Offer and be eligible to receive payment of the Total Consideration, which includes the Tender Offer Consideration and the Early Tender Premium, was 5:00 p.m. (New York City time) on September 23, 2024 (such time and date, the "Early Tender Date").
As of the Early Tender Date, according to D.F. King & Co., Inc., the tender agent and the information agent for the Tender Offer (the "Tender and Information Agent"), US$401,488,000 in aggregate principal amount of Notes had been validly tendered (and not validly withdrawn) by Holders.
As the aggregate principal amount of Notes validly tendered (and not validly withdrawn) by Holders as of the Early Tender Date exceeds the Maximum Tender Amount, the Tender Offer has been oversubscribed. The Offeror has accepted for purchase, on behalf of the Issuer, Notes validly tendered (and not validly withdrawn) in the Tender Offer at or prior to the Early Tender Date up to the Maximum Tender Amount, resulting in a proration factor of approximately 70.3%. The Issuer intends to make payment in cash of an amount equal to the Total Consideration plus Accrued Interest for all such Notes on September 27, 2024 (the "Early Settlement Date"). As the aggregate principal amount of Notes validly tendered (and not validly withdrawn) by Holders as of the Early Tender Date exceeds the Maximum Tender Amount, the Offeror will not accept for purchase any Notes tendered after the Early Tender Date.
The withdrawal deadline of 5:00 p.m., New York City time, on September 23, 2024 has passed and, accordingly, Notes validly tendered in the Tender Offer may no longer be withdrawn.
All tendered Notes not accepted will be promptly credited to the Holder's account with DTC or otherwise returned to the Holder without cost.
The Offeror has the right to amend the Tender Offer at any time in its sole discretion, subject to applicable law. The Offeror reserves the right, in its sole discretion, to not accept any tenders of Notes for any reason. The Offeror and its affiliates reserve the absolute right, in their sole discretion, from time to time to redeem or purchase any Notes that remain outstanding after the Expiration Date through open market purchases, privately negotiated transactions, tender offers, exchange offers, redemptions or otherwise, upon such terms and at such prices as they may determine, which may be more or less than the price to be paid pursuant to the Tender Offer.
The Offeror has engaged Itau BBA USA Securities, Inc. to act as sole dealer manager (the "Dealer Manager") in connection with the Tender Offer. The Dealer Manager can be contacted at its telephone numbers set forth on the back cover page of the Offer to Purchase with questions regarding the Tender Offer.
Neither the Offer to Purchase nor any related documents have been filed with the U.S. Securities and Exchange Commission, nor have any such documents been filed with or reviewed by any federal or state securities commission or regulatory authority of any country. No authority has passed upon the accuracy or adequacy of the Offer to Purchase or any related documents, and it is unlawful and may be a criminal offense to make any representation to the contrary.
Under no circumstances shall this press release constitute an offer to buy or the solicitation of an offer to sell the Notes or any other securities of the Offeror or any of its affiliates in the United States, Brazil or in any other jurisdiction. The Tender Offer is not being made to, nor will the Offeror accept tenders of Notes from, Holders in any jurisdiction in which the Tender Offer would not be in compliance with the securities or blue sky laws of such jurisdiction.
Important Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are information of a non- historical nature or that relate to future events and are subject to risks and uncertainties. No assurance can be given that the transactions described in this press release will be consummated or as to the ultimate terms of any such transactions. The Offeror does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.
Disclaimer
This press release must be read in conjunction with the Offer to Purchase. This press release and the Offer to Purchase contain important information that must be read carefully before any decision is made with respect to the Tender Offer. If any Holder is in any doubt as to the action it should take, it is recommended to seek its own legal, tax, accounting and financial advice, including as to any tax consequences, from its attorney, accountant or other independent financial or legal adviser. None of the Offeror, the Dealer Manager, the Tender and Information Agent or any affiliate of such persons expresses any opinion as to whether the terms of the Tender Offer are fair to any Holder. Holders must make their own decision as to whether to tender any Notes and, if so, the principal amount of Notes to tender.
SOURCE Usinas Siderurgicas de Minas Gerais S.A.
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