Vale announces early tender results and upsizing of cash tender offers

RIO DE JANEIRO, Brazil, Sept. 26, 2019 /PRNewswire/ -- Vale Canada Limited ("Vale Canada") and Vale Overseas Limited ("Vale Overseas," and together with Vale Canada, the "Offerors"), each a wholly owned subsidiary of Vale S.A. ("Vale"), announce the increase of the Maximum Principal Amount (as defined below) from US$1,000,000,000 to US$1,081,393,000, in connection with the previously announced offers to purchase for cash (the "Offers") of the notes respectively issued by them of the series of notes as set forth in the table below under the headings "Tender Group 1" and "Tender Group 2" (all such notes appearing under either such heading, the "Notes" and each a "series" of Notes).

The Offerors also announce the early tender results of the Offers as of 5:00 p.m., New York City time, on September 25, 2019 (the "Early Tender Date") and that they have elected to exercise their right to accept for early purchase those Notes validly tendered in the Offers on or prior to the Early Tender Date.  As a result, all Notes validly tendered and not validly withdrawn at or prior to the Early Tender Date will be accepted for purchase.

The Offers are made upon the terms and subject to the conditions set forth in the offer to purchase dated September 12, 2019 (the "Offer to Purchase"). The Offerors' obligation to accept Notes tendered in the Offers is subject to the terms and conditions of the Offer to Purchase, which is hereby amended to increase the maximum aggregate principal amount of Notes that the Offerors will purchase pursuant to the Offers from US$1,000,000,000 to US$1,081,393,000 (as amended, the "Maximum Principal Amount").

The applicable Total Consideration (as defined in the Offer to Purchase) payable per US$1,000 principal amount of Notes tendered and accepted for purchase will be determined by the dealer managers based on the applicable fixed spread for each series of Notes (as set forth in the table above) plus the applicable yield-to-maturity of the Reference U.S. Treasury Security for that series of Notes (as set forth in the table above) as of 2:00 p.m., New York City time, on September 26, 2019.  The Offerors expect to announce the pricing of the Offers on September 26, 2019.

Because the aggregate principal amount of the Notes tendered pursuant to the Offers at the Early Tender Date reached the Maximum Principal Amount, no Notes tendered after the Early Tender Date will be accepted for purchase.  Any tendered Notes that are not accepted for purchase will be returned or credited without expense to the holder's account.  Payment of the applicable Total Consideration and accrued and unpaid interest for the Notes validly tendered and accepted for purchase is expected to be made, subject to the terms and conditions of the Offer to Purchase, on September 30, 2019 (the "Early Settlement Date"). The Offers will expire at 11:59 p.m., New York City time, on October 9, 2019 (the "Expiration Date").

The Offerors retained Banco Bradesco BBI S.A., Itau BBA USA Securities, Inc., J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc. to serve as dealer managers and D.F. King & Co., Inc. ("D.F. King") to serve as tender and information agent for the Offers.  The Offer to Purchase and any related supplements are available at the D.F. King website at www.dfking.com/vale.  The full details of the Offers are included in the Offer to Purchase.  Holders of Notes are strongly encouraged to carefully read the Offer to Purchase, including materials incorporated by reference therein, because they will contain important information.  Requests for the Offer to Purchase and any related supplements may also be directed to D.F. King by telephone at +1 (212) 269-5550 or +1 (866) 406-2283 (US toll-free) or in writing at [email protected]. Questions about the Offers may be directed to Banco Bradesco BBI S.A. by telephone at +1 (646) 432-6643 (collect), Itau BBA USA Securities, Inc. by telephone at +1 (212) 710-6749 (collect), J.P. Morgan Securities LLC by telephone at +1 (212) 834-3424 (collect) or +1 (866) 834-4666 (US toll-free), Santander Investment Securities Inc. by telephone at +1 (212) 940-1442 (collect) or +1 (855) 404-3636 (US toll-free) and Scotia Capital (USA) Inc. by telephone at +1 (212) 225-5559 (collect) or +1 (800) 372-3930 (US toll-free).

This news release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any securities.  The Offers were made only by, and pursuant to the terms of, the Offer to Purchase.  The Offers were not made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.  In any jurisdiction where the laws required the Offers to be made by a licensed broker or dealer, the Offers were made by the dealer managers on behalf of the Offerors.  None of the Offerors, the tender and information agent, the dealer managers or the trustee with respect to the Notes, nor any of their affiliates, made any recommendation as to whether holders should tender or refrain from tendering all or any portion of their Notes in response to the Offers.  None of the Offerors, the tender and information agent, the dealer managers or the trustee with respect to the Notes, nor any of their affiliates, have authorized any person to give any information or to make any representation in connection with the Offers other than the information and representations contained in the Offer to Purchase.

For further information, please contact:
+55-21-3485-3900
[email protected]

This press release may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), and the French Autorité des Marchés Financiers (AMF), and in particular the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20-F. 

SOURCE Vale S.A.