#Senior Notes #Brazil #Cash Tender Offer #Belo Horizonte #Samarco Mining

Samarco Mining's Cash Tender Offer Results

Samarco Mineração S.A., currently undergoing judicial recovery, recently announced the final results of its modified Dutch auction cash tender offer for its 9.000% senior notes due in 2031. The company disclosed essential details regarding the tender process, aiming to ensure all stakeholders are adequately informed.

Tender Offer Details

On June 11, 2025, Samarco reported that the maximum amount allocated for the notes tendered in the offer would be approximately $34,081,041.43. The tender offer’s key features were established in the Offer to Purchase document dated May 12, 2025, reflecting the terms outlined earlier. The deadline for submissions was set for June 10, 2025, at 5:00 PM Eastern Time.

Samarco indicated that as of the cutoff time, the aggregate principal amount of notes tendered reached $174,429,650, an impressive figure reflecting significant interest in the offer. The company accepted $34,865,517 of the offered notes, demonstrating the effective demand and appropriateness of the auction mechanism.

Auction Mechanism and Financial Terms

The tender process employed a modified Dutch auction mechanism, allowing holders of the notes to tender their securities at specific bid prices. The clearing price and consideration for the accepted notes were set at $977.50 for every $1,000 of principal amount tendered, inclusive of accrued interest.

The company also announced a proration factor of approximately 14.68%, a necessary adjustment due to the oversubscribed nature of the offer. This factor will influence the allocations made to respective holders who participated in the auction.

Cancellations and Future Actions

Samarco emphasized that all accepted notes will be canceled, ensuring they will not be re-issued or re-sold in the future. This decision is in line with the company’s ongoing restructuring efforts and commitment to financial stability. Notes that were not accepted due to proration, as well as those tendered above the clearing price, will be promptly returned to their holders.

This tender offer serves as a critical financial maneuver for Samarco as it seeks to enhance its balance sheet while managing its obligations effectively. Moving ahead, the company plans to execute payments for the accepted notes on June 12, 2025, ensuring a swift conclusion to this round of financial restructuring.

Investor Relations and Upcoming Plans

Investors interested in further details or who wish to inquire about the tender offer can reach out to Samarco’s dealer manager, Citigroup Global Markets Inc. They are prepared to assist holders with any additional questions regarding their participation or the terms of the offer.

As Samarco navigates through its recovery phase, these tender offer details represent a significant step towards achieving financial stability and rebuilding investor confidence. The company appears committed to transparency and responsible management as it continues along this path.

Conclusion

The results of Samarco’s tender offer reveal a robust engagement from note holders, signaling both interest and trust in the company’s ongoing efforts to stabilize its financial standing. By employing a careful auction mechanism and addressing stakeholder concerns, Samarco aims for a brighter future amid its restructuring process. Stakeholders are encouraged to stay informed as further developments unfold and participate in future offerings and initiatives initiated by the company.