Photo by: Bloomberg
VANCOUVER (miningweekly.com) – Brazil’s Vale has redeemed $1-billion worth of 2019 bonds and will launch a $750-million tender offer for its 4.625% guaranteed notes due 2020.
Subsidiary Vale Overseas notified its shareholders of the 2019 notes of its decision to redeem all the outstanding notes and pay the related ‘make-whole’ premium calculated according to terms outlined in the relevant indenture.
The redemption date of the 2019 notes will be September 28.
Vale previously said that it had plans to lower net debt to between $15-billion and $17-billion in 2017, from $22.12-billion in the second quarter.
Vale Overseas has retained Citigroup Global Markets, Credit Agricole Securities, RBC Capital Markets and Scotia Capital to serve as dealer managers, while Global Bondholder Services will serve as depositary and information agent for the tender offer.