Brazil's Cosan launches tender offer for 9% notes

By Susanna Moon

Chicago, Oct. 9 - Cosan SA Industria e Comercio said it began a cash tender offer to buy any and all its outstanding 9% senior notes due 2009.

Cosan also is soliciting consents to amend the notes to make the covenants and events of default consistent with that of its outstanding $400 million 7% notes due 2017, which were issued in January 2007.

The tender offer expires at midnight ET on Nov. 5. The consent solicitation ends at 5 p.m. ET on Oct. 22.

The total payout will be calculated as of 2 p.m. ET on Oct. 22 and will be equal to the present value on Oct. 25, the settlement date, of each $1,000 principal amount of notes plus interest that would accrue until the maturity date, discounted using the bid-side yield on the 3 3/8% U.S. Treasury notes due Oct. 15, 2009 plus a fixed spread of 50 basis points.

The payout also will include a consent fee of $10.00 for each $1,000 principal amount of notes tendered by the consent deadline.

Holders may tender notes and grant consents, or they may deliver consents without tendering notes and receive only the consent fee.

Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-5384) is dealer manager. Global Bondholder Services Corp. is the information agent (866 952-2200 or 212 430-3774).

Cosan is a Sao Paulo-based sugar and ethanol producer.

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