CORPORATE LIABILITY MANAGEMENT - Making the Grade

CORPORATE LIABILITY MANAGEMENT - Making the Grade

Corporate & Sovereign Strategy Brazil

Capitalizing on an upgrade to iCapitalizing on an upgrade to investment grade by Standard & Poor’s and Moody’s and favorable market conditions, petrochemicals company Braskem successfully replaced expensive notes due 2014, 2015, and 2017. Following the operation, Braskem walked away with a newly issued $750 million 10-year bond, and a much improved debt amortization schedule. “We eliminated previous references with competitive ones and paid a very low premium at the same time,” says Marcela Drehmer, Braskem’s chief financial officer. Braskem priced the new 2021 bonds ahead of the tender offer. It came at 98.14 with a 5.75% coupon to yield 6.00%, or US Treasuries plus 243 basis po

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