Paranapanema Wraps Up Local Converts

Brazilian Metals producer Paranapanema has completed a BRL919.5m convertible debentures issue. The debentures, immediately convertible into company stock, were issued in two tranches. A BRL200m 2010 series pays interest of 6% over the ICPA inflation index, and a BRL719.5m 2019 series pays IPCA plus 9%. The first and second series were purchased by 13 and 17 investors, respectively, including four foreign entities in each, the company says. Santander managed the transaction. The offering came as part of an asset restructuring required by a 2006 agreement with creditors. Under the agreement, Paranapanema had the choice to raise capital through debentures or do an IPO. The IPO was canceled in March. Vale has said it is in talks to acquire Caraiba Metais and Cibrafertil, two of Paranapanema’s four units.