Camargo Correa Pair Reaches Majority in Tenders

Caue Finance and Loma Negra have reached 69.6% and 54.6% respective acceptance in tender offers for outstanding USD bonds. Holders of $104.5m in Caue’s 8.875% 2015 bonds and $54.6m of Loma Negra’s 7.25% of 2013 bonds had been accepted as of the July 19 early acceptance date. The companies are indirect subsidiaries of Brazilian conglomerate Camargo Correa. For each $1,000 in principal holders of the 2015s and 2013s got $1,750 and $1,070, which include a tender premium of $165m and $60 respectively. Early bird premiums on both come to $10. That will drop to $1,165 and $1,060 for the remainder of the offer period, expiring July 26. Caue Finance, an SPV, has also received sufficient consents to eliminate restrictive covenants, while holders of Loma Negra, a cement maker, will hold a meeting on July 26 to seek approval on amendments. BAML is acting as sole dealer manager.