Simpson Thacher represented Itau BBA Securities, Citigroup Global Markets and the other Initial Purchasers in an offering of US$650 million 7.950% Green Senior Secured Notes Due 2032 (the “Notes”) by LD Celulose International (“LDCI”), a wholly-owned subsidiary of LD Celulose S.A. (“LDC”), guaranteed by LDC and LD Florestal S.A. (“LDF”). LDC intends to use the net proceeds of the offering to retire existing project finance indebtedness.
The Firm also represented Itau BBA, Banco do Brasil S.A. (London Branch) and Citigroup Global Markets, as Joint-Book Runners, and the other lenders in connection with a parallel export prepayment secured term loan facility agreement (the “Facility”) having an initial commitment of US$1 billion (which was automatically reduced to US$350 million upon receipt by LDCI of proceeds from the 7.950% green senior secured notes due 2032).
LDC’s, LDF’s and LDCI’s obligations under the Notes and the Facility share certain Brazilian and Austrian collateral pursuant to the terms of an intercreditor agreement.
LDC is a prominent player in the global cellulose industry, operating in Brazil a dissolving wood pulp plant and sourcing wood from its own plantations. LDC’s shareholders are Lenzing, a leading global producer of lyocell, modal and viscose fibers, and Dexco, a publicly-listed Brazilian company with its main business being the production of wood products, ceramic tiles, sanitary vitreous chinaware and metal fittings.
The Simpson Thacher team included Paulo Cardoso, Grenfel Calheiros, Gabriel Silva, Winnie Loureiro, Isabel de Carvalho, Susan Uquillas and Isadora Almeida (Capital Markets and Credit) and Jonathan Cantor (Tax).