Deals

Completion Date
December 2009

Transaction Type
Development Capital

Transaction Value
$1200 million

Lead Partner
Nicolas Van Tienhoven
Telephone +5521 3873 8000

Background
BroadSpan acted as Financial Advisor to Fibria in a liability management exercise, during which Fibria successfully issued US$2.2 billion in corporate bonds and loans. BroadSpan provided liability management services that included the structuring and execution of two capital markets transactions to refinance approximately 75% of the company’s debt. BroadSpan’s advice also included assistance in the amendment and restatement of several loan agreements that were not refinanced.

What Difference Did We Make?
BroadSpan advised Fibria on a liability management process that replaced almost US$ 2Bn of debt with rigid and expensive terms and conditions. BroadSpan’s work entailed working alongside Fibria in executing its first ever foray into the bond market (US$ 1Bn) and the placement of more than US$ 1Bn in the syndicated loan market. The transaction was executed in record time and allowed the company to improve its terms and conditions, including price, tenure and guarantees offered, thus immediately impacting its credit rating. Finally, the refinancing allowed Fibria to re-embark its capital expenditure program in anticipation of the dramatic rebound in pulp (prices). Fibria’s choice of BroadSpan was a direct result of its relationship, senior level involvement, transaction skills and the fact that the firm was an independent party (no conflicts) in the process.