Duratex Seeks Convert Funding

Brazilian wood and metal products company Duratex plans to raise BRL100m ($58m) through the sale of convertible debentures to its shareholders. The 2017 bonds would be linked to inflation and pay a fixed rate of 6%. The month-long subscription period begins today. The bonds are convertible at the holder’s discretion for 10 shares at BRL12.87 per share. Itau is managing the sale. The sale follows the issue of similar bonds as part of a BRL273m financing package with BNDES announced last month.