January 1, 2011
The union, christened Fibria, had solid operations and was the worlds largest pulp producer, but faced a massive task to refinance the 45% of total debt that was coming due 2010-2011.
In all, Fibria faced $2.1 billion in derivative prepayments and $1.5 billion in other refinancing needs. It would tackle these through the sale of its Guaíba mill to Chiles CMPC for $1.43 billion, a five and seven-year pre-export facility totaling $1.15 billion, and $1.00 billion in new 10-year bonds. Santander advised the buyer on the sale closed in December 2009.
"We were able to retire all of our derivative debt by late May, and this gives us the flexibility to resume growth," says Jo
After suffering derivative losses in the 2008-2009 crisis, Brazil’s Aracruz Celulose was purchased by Votorantim Celulose e Papel.