Gerdau S.A. Finalizes Cash Tender Offer for Outstanding Notes Due 2027

Gerdau S.A. Finalizes Cash Tender Offer for 4.875% Notes Due 2027

Gerdau S.A. (NYSE: GGB), a prominent player in the global steel industry, has announced the results of its recent cash tender offer concerning its outstanding 4.875% notes due in 2027, issued by its subsidiary Gerdau Trade Inc. This announcement was released on June 9, 2025, marking a significant operational step for the company.

Overview of the Offer

The cash tender offer was designed to purchase any and all of the outstanding notes, which have garnered much attention from investors. The offer expired at 5:00 PM New York City time on June 9, 2025. As per the company’s communication, Gerdau has undertaken this initiative to manage its debt and streamline its financial portfolio amid evolving market conditions.

In the Offer, a total of approximately US$418.24 million of the 4.875% notes were documented. Out of this, US$237.646 million was tendered by investors, leaving an outstanding amount of US$180.598 million after the settlement.

Details of the Tender Offer

The exact terms and details influencing the tender offer, as outlined in the Offer Documents dated June 3, 2025, included the consideration for each validly tendered note. Each accepted note encapsulated a consideration of US$1,007.83 based on the terms established as well as yields calculated to their maturity dates. Importantly, this prospective value excludes any accrued interest, which remains payable in cash to the noteholders.

Settlement and Next Steps

The settlement for the accepted notes is slated to occur within three business days post-expiration, expected on June 12, 2025. This strategic move signifies Gerdau’s efforts to secure a robust financial future, ensuring they can continue their operational excellence without excess liabilities.

Investment Advisors and Further Information

To facilitate the tender offer, Gerdau has engaged notable financial institutions such as BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC as dealer managers. This selection demonstrates Gerdau's commitment to deploying experienced partners in guiding financial decisions and enhancing investor relations.

For interested stakeholders and investors, further details can be accessed through the Offer Documents available at D.F. King. All inquiries can be directed to D.F. King Co., the tender and information agent attached to this operation.

Conclusion

Gerdau’s latest cash tender offer represents a pivotal approach to maximizing investor confidence and optimizing their financial structure. As the company continues to navigate the evolving landscape of the steel industry, such strategic measures are crucial in reinforcing Gerdau’s long-term viability and operational strength. Investors and market analysts will be keenly observing Gerdau’s next moves, particularly as they progress from this tender offer to new strategic initiatives and projects.

In summary, Gerdau S.A. not only affirms its active management of debt obligations but also underscores its ongoing commitment to fulfilling investor expectations and maintaining market leadership amidst competitive pressures.