Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Suzano Slumps to Nine-Year Low on Share Sale: Sao Paulo Mover

Don't Miss Out —
Follow us on:

May 16 (Bloomberg) -- Suzano Papel & Celulose SA slumped to the lowest in almost nine years after Brazil’s second-largest pulp producer said it plans to sell new shares to reduce debt and reinforce cash.

Suzano fell 1.9 percent to 6.36 reais in Sao Paulo, the lowest close since July 2003. Brazil’s benchmark Bovespa stock index slipped 0.6 percent.

The company plans to sell as many as 247.9 million voting and non-voting new shares and raise about 1.62 billion reais ($809 million), Salvador, Brazil-based Suzano said in a preliminary prospectus late yesterday.

Suzano will use proceeds to pay some debt and reinforce its cash position after debt climbed to a seven-year high in the first quarter. Net debt rose to 4.8 times earnings before interest, taxes, depreciation and amortization, or Ebitda, the highest since the first quarter of 2005, according to the latest available information on the company’s website.

The pulpmaker also received a bank loan of 2 billion reais from Banco BTG Pactual SA, according to a separate filing yesterday. Banco BTG is the financial adviser on the share sale.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.