Fibria Adds Equity Support

Brazil’s Fibria has priced a BRL1.44bn ($766m) equity follow-on, according to the CVM, an all-primary share sale that raises funds to help improve the pulp and paper producer’s capital structure. It sold 91m shares, at BRL15.83 each, representing a 1.1% discount to Tuesday’s BRL 16.00 closing price. The total includes a 15% greenshoe. Though the improving story might still be challenging for some investors, the sale benefitted from a 60% anchor as Grupo Votorantim and BNDESPar exercised their rights and maintain stakes of 30% each. The sale is the entity’s first offering under the new Fibria name, though both Votorantim Celulose e Papel and Aracruz were longtime Bovespa members, and is done to raise funds for repaying debt and general purposes. Itau and Bank of America Merrill Lynch were global coordinators on the transaction, with Banco do Brasil, BTG Pactual, Deutsche Bank and Santander as bookrunners.