Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) is gearing up to sell bonds in the international market this week in order to fund a fresh tender offer for notes maturing in 2026, according to a presentation to investors seen by LatinFinance.
CSN began calling investors on Wednesday to pitch the dollar-denominated notes, which will have tenors of seven or 10 years. The company expects to price the deal as early as Thursday, according to an audio recording accompanying the slides.
Bradesco, BTG Pactual, Santander, Morgan Stanley, Crédit Agricole, UBS, Citi and JPMorgan are joint bookrunners on the Rule 144A/Reg S deal, the company said.
“The idea of this present transaction is to eliminate a portion of the amortization challenges of 2026 to further extend” maturities, said the steelmaker’s CFO, Marcelo Ribeiro, in the recording.
In a press release issued on Wednesday, CSN said it is offering to repurchase the $300 million outstanding on its 7.625% 2026 bonds, putting up $1,010 for every $1,000 in principal for notes turned in by December 5.
In addition to funding the buyback, the firm will also use the proceeds from the new notes for general corporate purposes, including refinancing other debt maturities, according to the investor presentation.
Ribeiro added that CSN plans to issue more debt in the local market to pay off short-term debt and fund acquisitions.
The company last issued bonds in the international market in February 2022, when it sold $500 million worth of 10-year bonds to buyback some of the 2026 notes.