The Firm represented Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Santander Investment Securities Inc., as initial purchasers, in a US$750 million debt offering by Braskem S.A., a Brazilian corporation. Braskem Finance Limited, a Cayman Islands finance subsidiary, issued 5.75% Notes due 2021, which were guaranteed by Braskem. The offering was conducted in reliance upon Rule 144A and Regulation S.
The Firm also represented Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Santander Investment Securities Inc., as dealer managers and solicitation agents, in concurrent cash tender offers and consent solicitations with respect to three series of outstanding debt securities issued by Braskem Finance and Braskem. The tender offers resulted in the purchase of approximately US$166 million principal amount (or 66%) of 11.75% Notes due 2014, approximately US$85 million principal amount (or 57%) of 9.375% Notes due 2015 and approximately US$144 million principal amount (or 53%) of 8.00% Notes due 2017. The net proceeds were used, in part, by Braskem to fund the tender offers, with the remainder to be used to repay other debt and for general corporate purposes.
Braskem is the leading petrochemical company in Latin America and the third largest Brazilian-owned private sector industrial company.
The Simpson Thacher team for the transaction included, among others, Glenn M. Reiter, Kirsten L. Davis, Daniel Bae and Sasha Willimann (Capital Markets and Securities), as well as Jonathan Cantor, Jason Vollbracht and Andrew Purcell (Tax).