MILBANK REPRESENTS ISSUERS AND UNDERWRITERS IN THREE BRAZILIAN BOND DEALS VALUED AT US$860 MILLION

Firm advises issuers and financial institutions in debt offerings by major Brazilian mining, airline and cement companies

Continuing its strong showing in Latin America this year, Milbank, Tweed, Hadley & McCloy’s capital markets practice closed three Brazilian bond offerings within 10 days in late September and early October with a total value of US$860 million.

Details on the three transactions:

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  Andrew Janszky

  Milbank represented Samarco Mineração S.A., a leading Brazilian mining company that produces and sells iron ore pellets, in its US$500 million note offering.  Milbank attorneys included Global Securities partner Andrew Jánszky with assistance from New York-based associate Muhseen Abdoolraman and international attorney Concy Gonçalves in São Paulo. The transaction closed on September 26.

• Milbank represented Gol LuxCo S.A., subsidiary of longtime client GOL Linhas Aéreas Inteligentes S.A., in its $325 million senior notes offering including a three-series tender offer for $225 million.  The transaction is part of Gol’s ongoing process of extending the average maturities of its U.S. dollar denominated debt.  Milbank attorneys included Global Securities partners Andrew Jánszky and Tobias Stirnberg with assistance from associates Felipe Camara in São Paulo and Rodrigo Carvalho in New York.  The transaction closed on September 24.

• Milbank represented the initial purchasers Bank of America Merrill Lynch and Credit Suisse in the reopening of senior unsecured notes by Cimento Tupi, a leading producer and distributor of cement in Brazil.  The total outstanding amount of 9.75% Senior Unsecured Notes due 2018 after the closing of the transaction is US$185 million.  Milbank attorneys included Global Securities partners Marcelo Mottesi and Tobias Stirnberg with assistance from associate Fabiana Sakai and international attorney Concy Gonçalves. The transaction closed on October 2.

“Despite the relative slowdown of the Brazilian economy this year, there are plenty of strong performers in a number of sectors and investors continue to show their interest in acquiring securities of these firms,” Mr. Mottesi said.  “We’re pleased to have played a key role advising the issuers and initial purchasers in these transactions, on behalf of three stand-out brands in Brazil’s mining, airline and construction industries.”

Added Mr. Jánszky, managing partner of Milbank’s Sao Paulo office, “Brazil remains one of the mainstays of our Latin American practice.  The part we played working with both the issuers and underwriters in these three offerings reflects Milbank’s prominence as a go-to adviser for leading Brazilian businesses and global financial institutions in handling the most important capital markets deals originating in the country.”