Braskem Finance Limited Announces Intention to Launch Tender Offers and Consent Solicitations for 11.75% Notes Due 2014, 9.375% Notes Due 2015 and 8.00% Notes Due 2017

SAO PAULO, April 6, 2011 /PRNewswire/ -- Braskem Finance Limited ("Braskem Finance"), intends to commence offers to purchase for cash (with respect to each series of Notes (defined below), a "Tender Offer" and, collectively, the "Tender Offers") any and all outstanding 11.75% Notes due 2014 (the "2014 Notes"), 9.375% Notes due 2015 (the "2015 Notes") and 8.00% Notes due 2017 (the "2017 Notes" and, together with the 2014 Notes and the 2015 Notes, the "Notes") following the announcement of terms of an anticipated financing transaction.  Braskem Finance and Braskem S.A. ("Braskem"), the parent company of Braskem Finance, are co-issuers of the 2014 Notes and the 2017 Notes, and Braskem is the issuer of the 2015 Notes.  

In connection with each Tender Offer, Braskem Finance also intends to solicit (with respect to each series of Notes, a "Consent Solicitation" and, collectively, the "Consent Solicitations") the consents of the holders of each series of Notes to the adoption of certain amendments (the "Proposed Amendments") to each of the indentures or issuing and paying agency agreement governing the Notes (collectively, the "Governing Debt Instruments") to eliminate substantially all of the restrictive covenants, as well as specified events of default and related provisions contained in each of the Governing Debt Instruments.  With respect to each Governing Debt Instrument, the Proposed Amendments require the consent of holders of a majority in aggregate principal amount of the applicable Notes outstanding (excluding any Notes held by Braskem Finance or its affiliates).

The following table sets forth the anticipated Purchase Price for each series of Notes:

(1)  Amount includes U.S.$100.0 million of 2015 Notes held by a subsidiary of Braskem.  

(2)  The amount to be paid for each U.S.$1,000 principal amount of Notes validly tendered and accepted for purchase, excluding accrued and unpaid interest, which will be paid in addition to the Purchase Price.  The Purchase Price includes an anticipated consent payment equal to U.S.$20 for each U.S.$1,000 principal amount of Notes accepted for purchase pursuant to each of the Tender Offers.

This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents.  The Tender Offers and Consent Solicitations will be made solely pursuant to an offer to purchase and consent solicitation statement and related letter of transmittal and consent.  

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to Braskem Finance that may cause the actual results to be materially different from any future results expressed or implied in such forward-looking statements. Although Braskem Finance believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to Braskem Finance's management, Braskem Finance cannot guarantee future results or events.  Braskem Finance expressly disclaims a duty to update any of the forward-looking statements.

SOURCE Braskem Finance Limited