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 Rises Most Since March as Brazil Bank Boosts Stake

Aug. 20 (Bloomberg) -- Suzano Papel e Celulose SA, Brazil’s second-largest pulpmaker, climbed the most in five months after the country’s development bank became the company’s second-largest shareholder.

Suzano rose 6.9 percent to close at 4.35 reais in Sao Paulo trading, the steepest gain since March 2.

The company led by Chief Executive Officer Antonio Maciel Neto said bondholders converted 1.2 billion reais ($600 million) in local bonds into 332.9 million shares, boosting the total shares outstanding by 43 percent to 1.11 billion. BNDES, as Brazil’s development bank is known, held about 45 percent of the convertible bonds and the swap takes its stake to 18 percent of equity from 6.5 percent, according to data on Suzano’s website. BNDES converted the bonds at 4 reais a share, the data show.

Suzano is struggling to lower leverage after debt reached a 10-year high in the second quarter as the company pushes ahead with expansion plans amid a slump in pulp demand. Suzano’s net debt rose to 6.85 billion reais in the second quarter from a year ago, and was 5.7 times earnings before interest, taxes, depreciation and amortization, or Ebitda.

Had BNDES waited until the end of the year to make the conversion, it would have been at 17.39 reais a share, giving the bank a lesser total stake of 7.6 percent in Suzano.

To contact the reporters on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net; Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@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.