Odebrecht Tender Gets Strong Response

Holders of $379m of Odebrecht’s 2020 bonds and $428m of its 2023 bonds have accepted a cash tender offer, the construction company says, exceeding a combined $450m limit. Accepting creditors get $1,712.50 per $1,000.00 principal of the 2020 bonds, in an offer that expired Wednesday. For the 2023s, holders receive $1,190.00 per $1,000.00 principal of the 2023 prior to Wednesday’s early deadline, and $1,160.00 after, until a November 19 final deadline. There were $800m outstanding in the 7.0% 2020s and $500m outstanding in the 6.0% 2023s. The repurchase is funded by the October reopening of $450m in 2042 bonds. The Baa3/BBB minus 7.125% coupon notes reopened at 116.266 to yield 5.950%. Bradesco, BNP Paribas, Banco do Brasil, and Citi and Mitsubishi-UFJ managed the reopening and are handling the tender.