Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is reportedly seeking a capital injection of up to $1 billion, following the company’s debt restructuring with creditors Banco do Brasil (BB) and Caixa Economica Federal (CEF), two Brazilian state-owned banks that account for nearly half of the company’s total debt.
A media report by Estadao said CSN will use the proceeds of the proposed offering to buy back notes due in 2019 and 2020.
An audit by Deloitte last year said CSN had used failing internal controls in a 20-F form to the US Securities and Exchange Commission (SEC). As a result, the company could not obtain a “comfort letter,” a document by an accounting firm assuring the financial soundness of a company.
The comfort letter would help CSN get more investors in its effort to raise the proposed $1 billion capital. CSN is reportedly offering the notes even without the comfort letter, which is said to soon arrive.