Brazil's Suzano Completes $1 Billion Bond Offering

Suzano SA, a Brazilian forestry company, has priced a $1 billion bond offering. Suzano is a vertically integrated producer of eucalyptus pulp and paper in Latin America, with operations divided into two segments: Pulp and Paper. The company has numerous subsidiaries and a product portfolio that includes coated and uncoated printing and writing paper, paperboard, tissue paper, market pulp, and fluff pulp.

Suzano SA, a Brazilian forestry company, has priced a $1 billion bond offering. The company, a vertically integrated producer of eucalyptus pulp and paper in Latin America, is well-known for its operations in the Pulp and Paper segment. Suzano SA operates through numerous subsidiaries and offers a diverse product portfolio, including coated and uncoated printing and writing paper, paperboard, tissue paper, market pulp, and fluff pulp [1].

The bond offering, announced on September 2, 2025, includes two series of guaranteed notes. The first series consists of 5.750% Guaranteed Notes due in 2026, issued by Suzano Austria GmbH and guaranteed by Suzano. The second series includes 5.500% Guaranteed Notes due in 2027, issued by Suzano International Finance B.V. and also guaranteed by Suzano [1].

The total principal amount outstanding for these notes is $1.216 billion, with $516.581 million due in 2026 and $700 million due in 2027. The notes carry a fixed spread of 50 basis points over the applicable reference U.S. Treasury security [1].

The bond offering is subject to certain conditions, including the pricing of and receipt of proceeds from an offering of debt securities by Suzano Netherlands B.V., a wholly-owned finance subsidiary of Suzano. This debt financing transaction must generate sufficient net proceeds to effect the repurchase of the notes validly tendered and accepted for purchase [1].

The tender consideration for each US$1,000 principal amount of each applicable series of notes will be determined based on the yield to maturity of the applicable reference U.S. Treasury security, as quoted on the Bloomberg Bond Trader FIT4 on September 8, 2025, at 2:00 p.m. New York City time [1].

The offers are expected to commence on September 2, 2025, with a price determination date of September 8, 2025. The withdrawal and expiration dates are also set for September 8, 2025. The guaranteed delivery date is expected to be on September 10, 2025, and the settlement date is expected to be on September 11, 2025 [1].

Suzano SA has retained several dealer managers, including BofA Securities, Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., MUFG Securities Americas Inc., and UBS Securities LLC, to facilitate the bond offering. Holders of the notes are encouraged to carefully read the offer to purchase document, which is available on the D.F. King website [1].

References:
[1] https://www.globenewswire.com/news-release/2025/09/02/3142567/0/en/Suzano-announces-cash-tender-offers-for-notes-due-2026-and-2027.html