Suzano Launches Follow-on

Suzano Papel e Celulose plans to raise about BRL1.5bn ($750m) in an equity follow-on, it says. The Brazilian pulp and paper company is scheduled to start marketing June 11 and price June 27. The all-primary share offer is to include 80.0m ordinary shares and 164.9m preferred shares. Such a sale would raise BRL1.56bn at Wednesday’s BRL6.36 preferred share close, if the use of a 15% greenshoe is assumed. Suzano is raising funds to strengthen its capital structure. BTG Pactual, Itau and JPMorgan are managing the sale. Separately, Suzano has taken out a BRL2bn 2018 standby facility with BTG.