Arauco Completes US$500 Million Sustainable Notes Offering
05.06.25
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Simpson Thacher represented Chilean forestry company Celulosa Arauco y Constitución S.A. (“Arauco”) in an offering of US$500 million aggregate principal amount of 6.180% Sustainable Notes due 2032. The offering was conducted in reliance upon Rule 144A and Regulation S under the U.S. Securities Act of 1933.
Arauco intends to use the net proceeds from the sale of these Sustainable Notes for general corporate purposes, which may include the partial financing of the construction of a pulp mill by its subsidiary Arauco Celulose do Brasil S.A. in the municipality of Inocência, State of Mato Grosso do Sul, Brazil (known as the “Sucuriú Project”) and/or the partial repayment of certain of Arauco’s existing indebtedness. In addition, Arauco intends to allocate an amount equal to the net proceeds from the sale of these Sustainable Notes to finance and refinance eligible green projects and eligible social projects.
Arauco is one of Latin America’s largest forest plantation owners and one of the world’s largest producers of bleached and unbleached softwood kraft pulp, bleached hardwood kraft pulp and wood products in terms of production capacity.
The Simpson Thacher team included Juan M. Naveira, Kirsten L. Davis, Isaac Cattan and Sofia Reizin (Latin America - Capital Markets); and Jonathan Cantor and Paul Jansch (Tax).