SAO PAULO, April 13, 2011 /PRNewswire/ -- GERDAU S.A. (Bovespa: GGBR,NYSE: GGB, Latibex: XGGB) (the "Company") announced today that it has priced its global offering of 68,026,910 common and 203,830,100 preferred shares (not including any exercise of the underwriters' over-allotment option), including preferred shares in the form of American depositary shares ("ADSs"). The common shares are being offered to the public in Brazil at a price R$15.60 per share, and the preferred shares are being offered to the public in Brazil at a price of R$19.25 per share. Common shares are being offered in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States pursuant to Regulation S under the Securities Act at a price of R$15.60 per share. Preferred shares in the form of ADSs are being offered to the public internationally at a price of US$12.13 per preferred ADS. The aggregate proceeds to the Company, after underwriting discounts and commissions, will be equivalent to approximately US$2,264 million.
The global offering consists of a registered offering in Brazil and an international offering, which includes a registered offering of preferred shares in the United States. Investors in the international offering of preferred shares may elect to receive their shares in the form of ADSs. The global offering is scheduled to close on Monday, April 18, 2011, subject to satisfaction of customary conditions. Further information about the offers is contained in the offering documents.
Existing shareholders of the Company that are resident in Brazil were given the right to subscribe for shares in the Brazilian offering on a priority basis. Our principal shareholder, Metalurgica Gerdau S.A., subscribed the number of common shares required to maintain its proportionate interest in our common shares following our capital increase, and increased its interest slightly.
The preferred ADSs are listed on The New York Stock Exchange under the symbol GGB. Our common shares and preferred shares are listed on the Sao Paulo Stock Exchange under the symbols GGBR3 and GGBR4, respectively. Our preferred shares also trade on the LATIBEX, under the symbol XGGB.
The Company has an effective registration statement on file with the U.S. Securities and Exchange Commission with regard to the offering of preferred shares, including in the form of ADSs. Copies of the final prospectus supplement for the international offering may be obtained, when available, from BTG Pactual (email@example.com), or by visiting EDGAR on the SEC Web site at www.sec.gov. Before you invest you should read the final prospectus supplement and other documents that we have filed and will file with the SEC for more complete information about Gerdau and the offering.
This release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities 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. Any offer of preferred shares, including in the form of ADSs, will be made solely by means of the prospectus supplement and other documents that may be filed with respect to such offering and the Company (in the case of the offering of preferred shares and ADSs). The offering of the common shares has not been and will not be registered with the SEC and the common shares may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the Securities Act), absent registration or an applicable exemption from registration.
For further information:
+55 51 3323 2703
Rio de Janeiro, April 13, 2011
Osvaldo Burgos Schirmer
Executive Vice President
Director of Investor Relations
SOURCE Gerdau S.A.