By Marisa Wong
Los Angeles, July 21 – Braskem SA announced it priced $600 million of 8˝% subordinated notes due 2081 (Ba1/B+/BB-).
The notes will be issued through wholly owned subsidiary Braskem Netherlands Finance BV and guaranteed by Braskem.
The company intends to use proceeds for debt prepayment and for general corporate purposes.
This is the first hybrid debt instrument issued by a Brazilian company with 50% equity treatment by S&P Global Ratings and Fitch Ratings and is part of the company’s efforts to reduce its corporate leverage to return to investment-grade status, according to a press release.
Braskem is a Sao Paulo-based petrochemical company.
| Issuer: | Braskem Netherlands Finance BV
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| Guarantor: | Braskem SA
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| Issue: | Subordinated notes
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| Amount: | $600 million
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| Maturity: | 2081
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| Coupon: | 8˝%
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| Announcement date: | July 20
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| Ratings: | Moody’s: Ba1
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| S&P: B+
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| Fitch: BB-
|
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