CMPC Readies Debt, Shares

Chilean pulp and paper maker Empresas CMPC plans to issue $500m in new shares and another $500m in dollar bonds to help finance the $1.43bn purchase of the Guaiba unit from Brazil’s Aracruz, it says. It has hired JPMorgan, Santander and BNP to manage the bond sale, according to a company official. A deal should take place by mid-November. The sale of 20m new shares, at approximately $25 each, is set to begin in the second half of November, the company says. The remaining $430m will come from the company’s own cash. CMPC agreed last week to buy the unit in southern Brazil, which would make CMPC the world’s second-biggest pulp producer.