Votorantim Cimentos S.A. announces the issuance of its Euro-denominated bond, representing the first issuance since November 2014 by a Brazilian company in the international capital markets in 2015. The issuance followed three days of investor meetings in London, Amsterdam, Munich and Frankfurt, which resulted in an issuance of €500 Euro-denominated notes due 2022 bearing interest at the rate of 3.5% per annum.
Despite intraday volatility in global capital markets, this successful issuance reaffirms Votorantim Cimentos' commitment to improve its debt profile, strengthen its strong liquidity position and maintain its solid investment grade rating.
For the second time, Votorantim Cimentos has undertaken a large note issuance in the international capital markets without a guarantee from Votorantim Industrial or any other company of the Votoratim Group.
In April 2014, Votorantim Cimentos issued 3.25% Euro-denominated notes due 2021 in an aggregate principal amount of €650.0 million. Concurrently with this issuance, we concluded a tender offer of our 5.25% Euro-denominated notes due 2017 pursuant to which €446.5 million in aggregate principal amount of the 2017 notes were repurchased.
"Despite Brazil's current challenging economic environment, there was strong demand for Votorantim Cimentos' notes, consistent with last year's bond offering. This demonstrates the company's credibility across global financial markets. The issuance was completed at attractive rates without any guarantee from the Votorantim Group, evidencing the further evolution of Votorantim Cimentos' corporate governance and financial discipline", said Lorival Luz, Votorantim Cimentos' Chief Financial and Investor Relations Officer.
Votorantim Cimentos' financial discipline and conservative debt management lead Fitch to remove the company´s negative outlook, reaffirming its BBB stable rating during the first quarter of 2015. Votorantim Cimentos is also rated BBB by Standard & Poor's and Baa3 by Moody's, both with a stable outlook.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any security and nor shall there be any offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The notes described herein have not been registered under the Securities Act or the securities laws of any state of the U.S. or any other jurisdiction, and the notes may not be offered or sold within the U.S. or to, or for the account of any U.S. persons (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable laws of other jurisdictions.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements. Statements that are not historical facts, including statements about our perspectives and expectations, which are forward looking statements. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions, when related to Votorantim Cimentos and its subsidiaries, indicate forward-looking statements. These statements reflect the current view of management and are subject to various risks and uncertainties. These statements are based on various assumptions and factors, including general economic, market, industry and operational factors. Any changes to these assumptions or factors may lead to practical results different from current expectations. Excessive reliance should not be placed on those statements. Forward-looking statements relate only to the date they were made and Votorantim Cimentos undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.