SÃO PAULO, Brazil, May 10, 2023
/PRNewswire/ -- FS Luxembourg S.à r.l. (the "Issuer"), a
wholly-owned finance subsidiary of FS Indústria de Biocombustíveis
Ltda. ("FS Ltda."), announces that it has commenced a cash
tender offer (the "Tender Offer") for up to US$100.0 million in aggregate principal amount
(subject to increase or decrease by the Issuer, in its sole
discretion, the "Maximum Tender Amount") of its 10.00% senior
secured notes due 2025 (the "Notes"). The Notes are fully,
unconditionally and irrevocably guaranteed by FS Ltda. and FS I
Indústria de Etanol S.A. (together with FS Ltda., the
"Guarantors").
The Tender Offer is being made upon the terms and subject to the
conditions set forth in an offer to purchase, dated May 10, 2023 (the "Offer to Purchase"). Any
capitalized term used but not defined in this press release has the
respective meaning set forth in the Offer to Purchase.
Certain information regarding the Notes and the terms of the
"Modified Dutch Auction" pricing mechanism is summarized in the
following table:
Title of
Security
|
CUSIP /
ISIN
|
Principal Amount
Outstanding
|
Early Tender
Premium(1)
|
Base Price
/
Minimum Bid
Price(1)(2)(3)
|
Acceptable
Bid
Premium
Range(1)
|
Acceptable
Bid
Price
Range(1)(2)(3)(4)
|
10.00% Senior
Secured Notes
due 2025
|
Rule 144A:
30315X AB0 /
US30315XAB01
Regulation S:
L40756 AB1 /
USL40756AB19
|
US$598,984,000
|
US$50.00
|
US$1,000.00
|
US$0.00 -
US$10.00
|
US$1,000.00 -
US$1,010.00
|
__________________
|
(1)
|
Per US$1,000 principal
amount of Notes accepted for purchase.
|
(2)
|
Includes the Early
Tender Premium.
|
(3)
|
Does not include
Accrued Interest.
|
(4)
|
Holders who tender the
Notes at or prior to the Early Tender Date may specify a Bid Price,
which must be within the Acceptable Bid Price Range.
|
The Tender Offer will expire at 5:00
p.m. (New York City time)
on June 8, 2023, unless extended by
the Issuer (such time and date, as it may be extended, the
"Expiration Date"). The deadline for Holders to validly tender (and
not validly withdraw) Notes in the Tender Offer and be eligible to
receive payment of the Total Consideration, which includes the
Early Tender Premium, will be 5:00
p.m. (New York City time)
on May 23, 2023, unless extended by the Issuer (such time
and date, as it may be extended, the "Early Tender Date").
The Tender Offer is being conducted as a "Modified Dutch
Auction" until the Early Tender Date. This means that if Holders
elect to participate in the Tender Offer at or prior to the Early
Tender Date, they must specify the minimum purchase price (the "Bid
Price") they would be willing to receive in exchange for each
US$1,000 principal amount of Notes
they choose to tender in the Tender Offer. The Bid Price that is
specified for each US$1,000 principal
amount of Notes must be in increments of US$1.00, and must be within the acceptable bid
price range, as set forth in the table above (the "Acceptable Bid
Price Range"). If any Bid Price is not specified in a whole
increment of US$1.00, such Bid Price
will be rounded down to the nearest US$1.00 increment. Each Holder tendering Notes in
the Tender Offer at or prior to the Early Tender Date is required
to specify a Bid Price. Holders who tender Notes at or prior to the
Early Tender Date without specifying a Bid Price, or at a Bid Price
below the Acceptable Bid Price Range, will be deemed to have
specified the base price as set forth in the table above (the "Base
Price") as their Bid Price. Tenders of Notes at or prior to the
Early Tender Date at Bid Prices above the Acceptable Bid Price
Range will not be accepted and will not be used for purposes of
calculating the Clearing Price. Acceptance of tendered Notes may be
subject to proration as described below.
Under the "Modified Dutch Auction" procedure, we will accept
Notes validly tendered in the Tender Offer (and not validly
withdrawn) at or prior to the Early Tender Date in the order of the
lowest to the highest Bid Prices specified or deemed to have been
specified by tendering Holders, and will select the single lowest
Bid Price so specified that will result in an aggregate principal
amount equal to the Maximum Tender Amount (or, if the amount of
Notes validly tendered in the Tender Offer multiplied by the
highest Bid Price so specified by tendering Holders with respect to
all Notes so tendered and not validly withdrawn is less than the
Maximum Tender Amount, then we will select such highest Bid Price),
which we refer to as the "Clearing Price." References to the
"Clearing Premium" are to the result of the Clearing Price
less the Base Price. The Clearing Price is the same as the
Total Consideration.
Holders of Notes that are validly tendered (and not validly
withdrawn) prior to or on the Early Tender Date and that are
accepted for purchase will receive the total consideration (the
"Total Consideration"), which will be equal to the Base Price
plus the Clearing Premium. Holders validly tendering Notes
in the Tender Offer after the Early Tender Date and at or prior to
the Expiration Date will only be eligible to receive payment of the
"Tender Offer Consideration," which equals the Total Consideration
less the Early Tender Premium, as set forth in the table
above. Any Notes validly tendered after the Early Tender Date and
at or prior to the Expiration Date will be deemed to have been
tendered with a Bid Price equal to the Total Consideration.
In the event that the amount of Notes validly tendered (and not
validly withdrawn) at or prior to the Early Tender Date with a Bid
Price equal to or below the Clearing Price would result in an
aggregate principal amount that exceeds the Maximum Tender Amount
and we elect to have an Early Settlement Date, then, subject to the
terms and conditions of the Tender Offer, Notes tendered after the
Early Tender Date will not be eligible for purchase, unless the
Maximum Tender Amount is increased.
If the purchase of all Notes validly tendered (and not validly
withdrawn) at or prior to the Early Tender Date with a Bid Price
equal to or less than the Clearing Price would cause us to accept
for purchase an aggregate principal amount of Notes that exceeds
the Maximum Tender Amount (taking into account the aggregate
principal amount of Notes validly tendered (and not validly
withdrawn) given such Clearing Price), then the Tender Offer will
be oversubscribed at the Early Tender Date and, assuming
satisfaction or waiver of the conditions to the Tender Offer, we
will purchase on, at our option, the Early Settlement Date or the
Final Settlement Date Notes validly tendered (and not validly
withdrawn) at or prior to the Early Tender Date and accepted for
purchase, as follows:
- first, all Notes validly tendered (and not validly
withdrawn) at or prior to the Early Tender Date with a Bid Price
less than the Clearing Price; and
- second, all Notes validly tendered (and not validly
withdrawn) at or prior to the Early Tender Date with a Bid Price
equal to the Clearing Price, on a prorated basis according to the
principal amount of such Notes, such that we purchase an aggregate
principal amount of Notes that does not exceed the Maximum Tender
Amount.
If the Tender Offer is not oversubscribed at the Early Tender
Date and the purchase of all Notes validly tendered after the Early
Tender Date but at or prior to the Expiration Date (when combined
with all Notes validly tendered (and not validly withdrawn) at or
prior to the Early Tender Date) would cause us to accept for
purchase an aggregate principal amount of Notes that exceeds the
Maximum Tender Amount, then the Tender Offer will be oversubscribed
at the Expiration Date and, assuming satisfaction or waiver of the
conditions to the Tender Offer, we will purchase on the Final
Settlement Date Notes validly tendered at or prior to the
Expiration Date and accepted for purchase, as follows:
- first, to the extent there was no Early Settlement Date,
all Notes validly tendered (and not validly withdrawn) at or prior
to the Early Tender Date; and
- second, all Notes validly tendered after the Early
Tender Date but at or prior to the Expiration Date, on a prorated
basis according to the principal amount of such Notes, such that we
purchase an aggregate principal amount of Notes that does not
exceed the Maximum Tender Amount.
All tendered Notes not accepted will be promptly credited to the
Holder's account with DTC or otherwise returned to the Holder
without cost.
The Issuer's obligation to accept for purchase, and to pay for,
Notes validly tendered and not validly withdrawn pursuant to the
Tender Offer is conditioned upon the satisfaction or, when
applicable, waiver of certain conditions set forth in the Offer to
Purchase. The Issuer has the right to amend or terminate the Tender
Offer at any time and to increase or decrease the Maximum Tender
Amount at its sole discretion, subject to applicable law.
Assuming acceptance by the Issuer of Notes validly tendered (and
not validly withdrawn) at or prior to the Early Tender Date, the
Issuer intends to make payment in cash of an amount equal to the
Total Consideration plus Accrued Interest for such accepted
Notes on the Early Settlement Date, which is expected to be three
business days after the Early Tender Date or as promptly as
practicable thereafter. Assuming acceptance by the Issuer of Notes
validly tendered (and not validly withdrawn) after the Early Tender
Date, but at or prior to the Expiration Date, the Issuer intends to
make payment in cash of an amount equal to the Tender Offer
Consideration plus Accrued Interest for such accepted Notes
on the Final Settlement Date, which is expected to be two business
days after the Expiration Date or as promptly as practicable
thereafter.
The Issuer has engaged Banco BTG Pactual S.A. – Cayman Branch,
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
and Santander US Capital Markets LLC to act as dealer managers
(the "Dealer Managers") in connection with the Tender Offer. In
such capacity, the Dealer Managers may contact Holders regarding
the Tender Offer and may request brokers, dealers, commercial
banks, trust companies and other nominees to forward the Offer to
Purchase and related materials to beneficial owners of Notes. The
Dealer Managers can be contacted at their telephone numbers set
forth on the back cover page of the Offer to Purchase with
questions regarding the Tender Offer.
Copies of the Offer to Purchase are available to Holders from
D.F. King & Co., Inc., the tender agent and the information
agent for the Tender Offer (the "Tender and Information Agent").
Requests for copies of the Offer to Purchase should be directed to
D.F. King at +1 (800) 967-5079 (toll-free), +1 (212) 269-5550
(collect) or fs@dfking.com.
Neither the Offer to Purchase nor any related documents have
been filed with the U.S. Securities and Exchange Commission, nor
have any such documents been filed with or reviewed by any federal
or state securities commission or regulatory authority of any
country. No authority has passed upon the accuracy or adequacy of
the Offer to Purchase or any related documents, and it is unlawful
and may be a criminal offense to make any representation to the
contrary.
Under no circumstances shall this press release constitute an
offer to buy or the solicitation of an offer to sell the Notes or
any other securities of the Issuer, the Guarantors or any of their
affiliates in the United States or
in any other jurisdiction. The Tender Offer is not being made to,
nor will the Issuer accept tenders of Notes from, Holders in any
jurisdiction in which the Tender Offer would not be in compliance
with the securities or blue sky laws of such jurisdiction.
Important Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements are information of a non-historical
nature or that relate to future events and are subject to risks and
uncertainties. No assurance can be given that the transactions
described in this press release will be consummated or as to the
ultimate terms of any such transactions. Neither the Issuer nor the
Guarantors undertake any obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information or future events or for any other reason.
Disclaimer
This press release must be read in conjunction with the Offer to
Purchase. This press release and the Offer to Purchase contain
important information that must be read carefully before any
decision is made with respect to the Tender Offer. If any Holder is
in any doubt as to the action it should take, it is recommended to
seek its own legal, tax, accounting and financial advice, including
as to any tax consequences, from its attorney, accountant or other
independent financial or legal adviser. None of the Issuer, the
Guarantors, the Dealer Managers, the Tender and Information Agent
or any affiliate of such persons expresses any opinion as to
whether the terms of the Tender Offer are fair to any Holder.
Holders must make their own decision as to whether to tender any
Notes and, if so, the principal amount of Notes to tender and the
Bid Price at which to tender.
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SOURCE FS Luxembourg S.à r.l.