#Brazil #São Paulo #Cash Tender Offer #Gerdau S.A. #Gerdau Trade Inc.

Gerdau S.A. Cash Tender Offer Announcement

Gerdau S.A. (NYSE: GGB) has officially announced a cash tender offer aimed at purchasing any and all of its outstanding 4.875% notes due 2027. These notes were issued by its subsidiary, Gerdau Trade Inc., and are fully backed by Gerdau itself along with its affiliates: Gerdau Aços Especiais S.A., Gerdau Açominas S.A., and Gerdau Aços Longos S.A. This strategic financial decision comes as a part of Gerdau's ongoing efforts to optimize its capital structure and provide benefits to its investors.

Offer Details

Gerdau's offer will expire today at 5:00 PM, New York City time, unless it is extended or terminated sooner by Gerdau Trade at its discretion. The company has also outlined specific conditions that need to be met for the offer to be accepted. Investors who choose to participate in the offer must submit their valid tenders before the expiration time. If holders of the notes deposit valid tenders before the expiry date, they will be paid accrued interest along with their principal amounts upon completion of the transaction.

Financial Considerations

The tender offer is designed to provide a consideration of $1,007.83 per note upon acceptance. This value is based on the yield calculated for the notes in relation to a reference U.S. Treasury security. According to Gerdau, the total principal amount outstanding for these notes is approximately USD 418.2 million. The company actively engaged several financial institutions to facilitate this offering.

Achievements and Future Prospects

This announcement marks another significant move for Gerdau, which is known for its robust financial health and innovative strategies in the metal industry. By handling the tender offer in a well-structured manner, the company is reinforcing its commitment to its stakeholders and demonstrating sound corporate governance practices. Moreover, such financial maneuvers could position Gerdau for more favorable terms in future financing arrangements, ultimately benefiting its operational growth.

Conclusion

Overall, Gerdau S.A.'s decision to launch a cash tender offer for its outstanding notes is not only a strategic financial maneuver but also a step towards improving its balance sheet. Investors and stakeholders are advised to keep a close eye on the developments surrounding the offer as it unfolds, especially given the potential implications it could have for Gerdau's future performance in the financial markets. For more detailed information about the offer, interested parties can contact the tender and information agent, D.F. King Co., Inc., or refer to Gerdau's official communications. This tender offer signifies Gerdau's proactive approach in navigating its financial obligations and optimizing its capital structure for future endeavors.