Samarco Increases Pricing and Reveals Early Tender Results for Senior Notes
Samarco Increases Pricing and Reveals Early Tender Results for Senior Notes
Samarco Mineração S.A. has made a significant announcement regarding its cash tender offer for its 9.000% senior notes due 2031. As of May 23, 2025, the company disclosed the early tender results and introduced a revised pricing structure for the tender offer. This development is crucial for investors considering participation in the offer.
Overview of the Tender Offer
Samarco has set a maximum aggregate spending limit of US$34,081,041.43 for the notes that will be tendered. However, this amount could increase at the company's discretion. The tender offer is structured as a Modified Dutch Auction, meaning that potential participants need to specify a minimum bid price they are willing to accept for each US$1,000 principal of notes.
Originally, the maximum bid price was set at US$960, but it has now been increased to US$980. This means that potential bidders can now place bids within a new range of US$930 to US$980, with increments of US$2.50 required for each bid. This adjustment aims to enhance the call for submissions and to make the offer more attractive to holders of the notes.
Key Dates and Details
The tender offer will continue until 5:00 PM EDT on June 10, 2025, unless any extensions are announced. Notably, the withdrawal rights for the tender offer expired simultaneously with the early tender date, allowing participants to further solidify their engagement in the process.
As of the early tender date, a total of US$9,936,303 in notes has been validly tendered. This figure indicates a proactive response from holders, demonstrating interest in the updated terms provided by Samarco.
Proration and Oversubscription Policies
In the event that the total purchase price for all valid tenders exceeds the maximum payment amount, Samarco will accept the notes on a prorated basis. This policy ensures that if the tender offer becomes oversubscribed by the expiration date, the distribution of accepted tenders will adhere closely to the specified terms.
Should the total valid submissions fall short of what is necessary to exceed the maximum payment amount, the company holds the option to either withdraw the offer or procure the notes at the highest bid price that meets the stipulated bidding criteria.
Dealer Manager and Information Access
Samarco has enlisted Citigroup Global Markets Inc. as the dealer manager for this tender offer, facilitating communication with holders and overseeing the process effectively. Interested parties can reach out via provided contact numbers to obtain detailed insights regarding the tender offer or consult the Offer to Purchase available through the Tender and Information Agent, Global Bondholder Services Corporation.
Conclusion
The revised offer terms not only reflect Samarco's commitment to engaging with its investors but also illustrate a strategic maneuver to heighten interest in their financial instruments. Investors looking to take part in the tender offer are encouraged to weigh their options carefully, keeping in mind the newly established bid price range and the implications of the tender offer's timing. As these developments unfold, the market will be watching closely to see how they impact the overall standing of Samarco in its recovery efforts.
Topics Financial Services & Investing）
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