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News Oct 24, 2017

Shearman & Sterling Advises on $650 Million Bond Offering by Gerdau

Shearman & Sterling advised Citigroup Global Markets and Santander Investment Securities as initial purchasers in connection with a Rule144A/Regulation S $650 million bond offering by Gerdau Trade Inc., a wholly owned subsidiary of Gerdau S.A., an international steel company and the largest producer of long-rolled steel in Brazil. The bonds pay interest at a rate of 4.875% per annum due 2027 (the “New Bonds”).

The new issuance was part of an overall liability management transaction in which Citigroup and Santander as principal, in an “intermediated tender offer,” offered to purchase, for cash, up to an aggregate maximum amount of $640 million 7% bonds due 2020 of Gerdau Holdings Inc., 5.75% bonds due 2021 of GTI, and 5.893% bonds due 2024 of GHI and GTL Trade Finance Inc. (collectively, the “Old Bonds”), which were subsequently resold to Gerdau for an agreed amount of New Bonds.

The Shearman & Sterling team included partner Stuart Fleischmann (New York-Capital Markets); counsel Jeffrey Tate(Washington, DC-Tax); and associates Flavio Averbug (New York-Capital Markets); Antonio Herrera Cuevas (San Francisco-Capital Markets) and Michael Daly (Washington, DC-Tax).