Odebrect Reworks Covenants

Brazil’s Odebrecht has received the majority bondholder approval needed to adjust terms on its $500m outstanding in 7.0% 2020 bonds issued through the Odebrecht Finance unit, it says. Through an offer launched July 16 and closed Monday, the builder is paying accepting holders $2.50 per $1,000 principal. The proposed amendments include eliminating covenants governing debt limits, dividend payments and transactions with affiliates, as well as loosening restrictions on liens and cross-acceleration in the event of default. Deutsche Bank and Goldman Sachs managed the operation.