Brazilian Paper Producer Details Follow-on

Celulose Irani plans to sell both primary and secondary units in an upcoming equity follow-on, it says, hiring Itau and Credit Suisse to manage the sale. The maker of paper, packaging and resins is raising funds for its expansion plan, which involves increasing pulp and packaging material production capacity and obtaining the required infrastructure. Irani does not detail the amount of funds to be spent through 2015, but says additional bank loans, likely through BNDES will be necessary in addition to the equity sale. It previously communicated that it would sell additional units, each composed of 1 common and 4 preferred shares. The sale is seen almost as an IPO, given the relative illiquidity of the outstanding shares. It does not give an indication of size or timing. A launch this week, however, suggests a late June launch and July pricing, joining several other issuers looking to complete deals before the traditional July-August holiday period. Irani common shares closed at BRL1.41 ($0.69) Monday and preferred shares at BRL1.51.