BEST CORPORATES – Suzano
Brazilian pulp and paper company shrugged off its sub-investment grade ratings to tap the cross-border bond market for 30-year debt, its longest issue to date
Suzano Papel e Celulose had stayed away from the capital
markets for years. Following a massive round of investments,
the Brazilian pulp and paper producer's leverage ratio peaked
at 6.7 times Ebitda in 2013. It soon focused on a strategy of
increasing cash flows and reducing debt, bringing its leverage
down to 2.3 times Ebitda by the end of last year.
Suzano’s leverage ratio increased to 2.8 times
Ebitda at the close of the first quarter but the company kept a
comfortable amortization schedule and stayed on the path to
reducing net debt to below 2 times Ebitda by 2018.
With cash flows on the way up and investments on the way
down, Suzano returned to the cross-border bond market in July
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