Brazil's Braskem ups consent fee offered for four series of notes

By Susanna Moon

Chicago, April 12 - Braskem SA's financing subsidiary, Braskem Finance Ltd., said it increased the consent fee in the solicitation for four series of notes.

The consent fee is now $2.00, up from $1.00, per $1,000 principal amount of notes, according to a company press release.

As previously noted, the company is soliciting consents to amend its $500 million of outstanding 7¼% notes due 2018, $750 million of outstanding 7% notes due 2020, $1 billion of outstanding 5¾% notes due 2021 and $700 million of outstanding 7 3/8% perpetual bonds.

Braskem Finance is proposing to amend the limitations-on-liens covenant and related definitions in order to provide Braskem with more operating flexibility to take up strategic projects and finance those projects. The proposed amendments will also exclude such projects from certain event-of-default provisions.

The provisions in the proposed amendments will conform to the provisions in the indenture dated July 22, 2011 governing Braskem's $500 million of 7 1/8% notes due 2041.

The consent solicitations began on April 5 and will expire at 5 p.m. ET on April 16.

Holders must be of record as of 5 p.m. ET on April 4.

Braskem Finance must receive consents from holders of a majority of the outstanding notes in order to execute a supplemental indenture.

D.F. King & Co., Inc. (212 269-5550 or 800 758-5378) is the information agent.

Braskem is a petrochemical company based in Sao Paulo, Brazil.

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