Brazil Announces Results of Global Bond Offering.BRASILIA, Brazil -- The Federative fed·er·a·tive adj. Forming, belonging to, or of the nature of a federation. fed  er·a Republic of Brazil
("Brazil") announces that it expects to issue approximately
U.S.$4.4 billion aggregate principal amount of new 8% Amortizing Global
Bonds due 2018 ("Global Bonds") pursuant to its invitation to
exchange and cash offering announced on July 18, 2005 (the "Global
Bond Offering"). The Global Bonds will be issued in exchange for
accepted offers of approximately U.S.$4.2 billion original principal
amount of 8% USD USDIn currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Front-Loaded Interest Reduction with Capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. Series L Bonds due 2014 ("C Bonds," also referred to as the "Old Bonds") which represents approximately U.S.$4.4 billion of currently outstanding principal amount of Old Bonds. The definitive principal amount of Global Bonds to be issued is subject to final confirmation by the settlement agent. No Global Bonds will be issued pursuant to the cash offering. Capitalized terms used but not defined in this notice are defined in the prospectus supplement, dated July 18, 2005, describing the Global Bond Offering and the terms of the Global Bonds. The Invitation expired on July 21, 2005 at 4:30 P.M., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time. The clearing extension of maturity for the Global Bonds was 3.75 years. There was no proration Proration A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered. . Accordingly, the Global Bonds will mature on January 15, 2018. Interest on the Global Bonds of each series will be computed on the basis of a 360-day year comprised of twelve 30-day months and payable in U.S. dollars. The Global Bonds will bear interest from August 1, 2005 at a rate of 8% per year, payable on January 15 and July 15 of each year, commencing on January 15, 2006. The Global Bonds will amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. in equal semi-annual installments commencing on July 15, 2009. The "original principal amount" of Old Bonds means the principal amount of such bonds at the time of their issuance, ignoring any amortization of principal or capitalization of interest. Application has been made to list the Global Bonds on the EuroMTF, the alternative market of the Luxembourg Stock Exchange The Luxembourg Stock Exchange (French: Bourse de Luxembourg) is a stock exchange based in Luxembourg City, in southern Luxembourg. . Brazil has applied to have the Global Bonds accepted into DTC's book-entry settlement system. Euroclear and Clearstream, Luxembourg have accepted the Global Bonds for clearance through their clearance systems. The Global Bonds are expected to be issued on August 1, 2005. Global Bond Offering materials may be obtained from The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , as the settlement agent, 101 Barclay Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York 10286, United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; The Bank of New York (Luxembourg) S.A., as the Luxembourg exchange agent, Aerogolf Center, 1-A Hoehenhof L-1736, Senningerberg, Luxembourg, D.F. King & Co., Inc., as the information agent, 48 Wall Street, 22nd Floor, New York, New York 10005, United States, and 2 London Wall London Wall was the defensive wall built by the Romans around Londinium, their strategically important port town on the River Thames in England. The name London Wall, as explained below, may also be used to refer to a road related to this wall. Buildings, 2nd Floor, London Wall, London EC2M 5PP, England, or the joint dealer managers. The joint dealer managers for the Global Bond Offering are:
Credit Suisse First Boston
Eleven Madison Avenue
New York, New York 10010-3629
United States
Inside the U.S.: Toll Free 1-800-820-1653
Outside the U.S.: Call Collect 1-212-538-0652
JPMorgan
270 Park Avenue
New York, New York 10017
United States
Inside the U.S.: Toll Free 1-877-217-2484
Outside the U.S.: Call Collect 1-212-834-7306
This communication shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy nor shall there be any sale of the securities referenced in this communication in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The distribution of materials relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Global Bond Offering, and the transactions contemplated by the Global Bond Offering, may be restricted by law in certain jurisdictions. If materials relating to the Global Bond Offering come into your possession, you are required by Brazil to inform yourself of and to observe all of these restrictions. The materials relating to the Global Bond Offering do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires the Global Bond Offering to be made by a licensed broker or dealer and any joint dealer manager or any affiliate of a joint dealer manager is a licensed broker or dealer in that jurisdiction, the Global Bond Offering shall be deemed to be made by such joint dealer manager or affiliate on behalf of Brazil in that jurisdiction. ITALY: The invitation has not been registered with the CONSOB CONSOB Commissione Nazionale per le Società e la Borsa (Italy) , as the invitation is directed to no more than 200 investors in Italy. No global bonds may be publicly offered, sold or delivered pursuant to the invitation, nor any public offer in respect of old bonds made, nor may any prospectus or any other offering or publicity material relating to the invitation or the global bonds be distributed, in the Republic of Italy by Brazil or the joint dealer managers or any other person on their behalf, except in compliance with Italian law and regulations. The global bonds may not be offered, sold or delivered pursuant to the cash offering (including in the secondary market) except to institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. (investitori professionali) as (i) indicated in Article 25, first paragraph, of CONSOB Regulation No. 11971 of May 14, 1999, as amended from time to time, and (ii) defined in article 31, second paragraph, of CONSOB regulation No. 11522 of July 1, 1998, as amended from time to time, other than individuals. PORTUGAL: The Global Bond Offering has not been and will not be registered with the Portuguese Securities Exchange Commission ("Comissao do Mercado For the hispanic surname "Mercado", please see de Mercado. Mercado first originated in Spain. In English it means 'market'. Is the last name of the 'Great' Fifa Soccer player Eswold. dos Valores Mobiliarios") and therefore the Global Bond Offering is not directed to Portuguese resident investors and the Global Bonds may not be offered or sold to the public in Portugal or under circumstances which are deemed to be a public offer under the Portuguese Securities Code ("Codigo dos Valores Mobiliarios") and other securities legislation and regulation applicable in Portugal. In addition, this document, the Prospectus, the Prospectus Supplement and all other offering materials are only being publicly distributed in the above noted jurisdictions where lawful Licit; legally warranted or authorized. The terms lawful and legal differ in that the former contemplates the substance of law, whereas the latter alludes to the form of law. A lawful act is authorized, sanctioned, or not forbidden by law. and may not be publicly distributed in Portugal, nor may any publicity or marketing activities related to the Global Bond Offering be conducted in Portugal. The Global Bond Offering is not addressed to holders of Old Bonds resident and/or located in Portugal, and no tenders from holders of Old Bonds resident and/or located in Portugal will be accepted, except if those holders are all institutional investors ("investidores institucionais"), within the meaning of article 30 of the Portuguese Securities Code or are, in aggregate, 200 or fewer (if some or all are non institutional investors), in which case the Global Bonds may be offered and tendered through a private placement ("oferta particular"), in accordance with the relevant provisions of the Portuguese Securities Code. UNITED KINGDOM: Stabilisation/FSA. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion