December 20, 2011
Brazilian pulp producer Suzano Papel e Celulose is asking domestic bondhold
Brazilian pulp producer Suzano Papel e Celulose is asking domestic bondholders to waive covenants limiting its leverage. Forex pressures are mainly responsible for the company’s net debt hitting BRL5.29bn ($2.84bn) as of September 30, putting its net to equity ratio over established limits at 4.2x. Suzano plans to offer holders a premium for accepting the waiver, though it does not elaborate on the value. The company has said it also plans to sell assets in a bid to reduce debt.