Usiminas reaches agreement with local and foreign creditors, to issue debt notes

Monday, 01 July 2019 00:42:13 (GMT+3)   |   Sao Paulo

Brazilian flats steelmaker Usiminas said on Monday it has reached an agreement with Brazilian banks to renegotiate existing debt, at the same time it will also issue debt notes to pay local and foreign creditors.

Usiminas said state-run bank Banco do Brasil (BB), and commercial banks Bradesco and Itau Unibanco, agreed to renegotiate the steelmaker’s debt.

Under the terms of the agreement, Usiminas will issue debt notes through its subsidiary Usiminas International for qualified institutional buyers, the details of which not disclosed at the time.

Usiminas said it will use the proceedings to pay BNDES, a creditor and Brazil’s local development bank, in full.

It will also use the money to pay Japanese creditors in full. Those include the Japan Bank for International Cooperation (JBIC), Nippon Usiminas Co, Mizuho Bank Ltd, as well as other unnamed Japanese creditors.

Usiminas said the updated debt agreement it reached with Brazilian banks are dependent on certain terms, including a real mortgage guarantee for its Ipatinga mill real estate assets, and the exclusion of a former cash sweep mandatory clause in the previous agreement.


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