Braskem Finance Limited Announces Increase of Consent Fee in Consent Solicitation For Each of Its 7.25% Notes Due 2018, 7.00% Notes Due 2020, 5.75% Notes Due 2021 and 7.375% Perpetual Bonds
SAO PAULO, April 12, 2012 /PRNewswire/ -- Braskem Finance Limited ("Braskem Finance"), a financing subsidiary of Braskem S.A. ("Braskem"), announced today that it is increasing the consent fee with respect to its previously announced solicitations of consents (with respect to each series of Securities (as defined below), the "Consents") from the holders of its 7.25% Notes due 2018 (the "2018 Notes"), 7.00% Notes due 2020 (the "2020 Notes"), 5.75% Notes due 2021 (the "2021 Notes") and 7.375% Perpetual Bonds (the "Perpetual Bonds" and, together with the 2018 Notes, the 2020 Notes and the 2021 Notes, the "Securities") to certain proposed amendments (with respect to each series of Securities, the "Proposed Amendments") to the indentures governing each series of Securities (with respect to each series of Securities, an "Indenture" and, collectively, the "Indentures") (with respect to each series of Securities, a "Consent Solicitation" and, collectively, the "Consent Solicitations"). The consent fee for each Consent Solicitation is increased from U.S.$1.00 to U.S.$2.00 per U.S.$1,000 principal amount of such Securities in respect of which consent letters and Consents to the applicable Proposed Amendments have been validly delivered and not validly revoked (with respect to each series of Securities, the "Consent Fee"). The expiration time for each of the Consent Solicitations remains unchanged and will expire at 5:00 p.m. (New York City time) on April 16, 2012, unless extended by Braskem Finance.
Each of the Proposed Amendments will amend the limitations on liens covenant and related definitions in order to provide Braskem with more operating flexibility to engage in strategic projects and the financing of such projects, subject to certain conditions, including indebtedness of such projects having limited recourse to Braskem and its other subsidiaries. The Proposed Amendments will also exclude such projects from certain events of default provisions contained in the applicable Indenture and exclude non-"significant subsidiaries" (as such term is defined in the applicable Indenture) from the restrictions contained in the limitations on liens covenant. The provisions in the Proposed Amendments conform to the corresponding provisions set forth in the indenture, dated on July 22, 2011, pursuant to which Braskem (through its subsidiary, Braskem America Finance Company) issued U.S.$500.0 million in aggregate principal amount of its 7.125% Notes due 2041.
Holders of Securities are referred to the consent solicitation statement, dated April 5, 2012, and the related consent letter (together, the "Consent Documents") for the detailed terms and conditions of each of the Consent Solicitations. The terms and conditions of each of the Consent Solicitations remain unchanged, except for the increase of the applicable Consent Fee. Holders who have previously delivered Consents need not take any further action in order to receive the increased Consent Fee if the applicable Consent Solicitation is successful. Each Consent Solicitation is made solely by means of the Consent Documents. These materials contain important information that holders of Securities should carefully read before any decision is made with respect to the applicable Consent Solicitation.
Braskem Finance reserves the right, in its sole discretion, to further modify the Consent Documents and the terms and conditions of any of the Consent Solicitations or to terminate any of the Consent Solicitations at any time.
The Information Agent for each Consent Solicitation is:
D.F. King & Co., Inc.
Banks and Brokers call: +1 (212) 269-5550 (collect)
All others call toll-free: +1 (800) 758-5378
Any questions or requests for assistance or for copies of the Consent Documents or related documents may be directed to the Information Agent at its telephone number set forth above. A holder may also contact any of the Solicitation Agents at the following telephone numbers: Citigroup at +1 (212) 723-6108 (collect) or +1 (800) 558-3745 (toll-free); Deutsche Bank Securities Inc. at +1 (212) 250-2955 (collect) or +1 (866) 627-0391 (toll-free); and BB Securities Ltd. at + (44) 207 367 5832 (collect); or such holder's broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitations.
THIS PRESS RELEASE IS NEITHER AN OFFER TO SELL NOR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THIS ANNOUNCEMENT IS ALSO NOT A SOLICITATION OF CONSENTS TO ANY PROPOSED AMENDMENTS. NO RECOMMENDATION IS MADE AS TO WHETHER HOLDERS OF THE SECURITIES SHOULD CONSENT TO ANY PROPOSED AMENDMENTS.
SOURCE Braskem S.A.
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