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Arauco Completes US$1 Billion Bond Offering and Concurrent Cash Tender Offers

05.01.19

The Firm recently represented Chilean forestry company Celulosa Arauco y Constitución S.A. (“Arauco”) in an offering of US$500 million aggregate principal amount of 4.25% Notes due 2029 and US$500 million aggregate principal amount of 5.5% Notes due 2049. The offering was conducted in reliance upon Rule 144A and Regulation S under the U.S. Securities Act of 1933.

The Firm also represented Arauco in concurrent abbreviated cash tender offers in which Arauco purchased US$33.215 million aggregate principal amount of its outstanding 7.25% Notes due 2019 and US$64.392 million aggregate principal amount of its outstanding 5.5% Notes due 2021. The tender offers were conducted on the basis of the five business day tender offer protocols.

Arauco is one of Latin America’s largest forest plantation owners and one of the world’s largest producers of bleached and unbleached softwood kraft pulp, bleached hardwood kraft pulp and wood products in terms of production capacity.

The Simpson Thacher team included David L. Williams, Juan M. Naveira, Pablo M. Richards and Antonio Ribichini (Capital Markets – New York); and Jon Cantor and Brian Mendick (Tax).