EX-99.1 2 a13-9797_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

NOTICE TO THE MARKET

 

Gerdau S.A. issues US$ 750 million 4.75% bonds through its subsidiary Gerdau Trade Inc.

 

Gerdau S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) announces that it has launched and priced, on April 8, 2013, ten-year bonds in the international capital markets through its wholly-owned subsidiary Gerdau Trade Inc. The bonds will be unconditionally and irrevocably guaranteed by Gerdau S.A., Gerdau Açominas S.A., Gerdau Aços Longos S.A. and Gerdau Aços Especiais S.A..

 

Final terms and conditions:

 

Issuer

 

Gerdau Trade Inc.

 

 

 

Guarantors

 

Gerdau S.A., Gerdau Açominas S.A., Gerdau Aços Longos S.A., Gerdau Aços Especiais S.A.

 

 

 

Ratings

 

S&P: BBB- / Fitch: BBB- / Moddy’s : Baa3

 

 

 

Principal Amount

 

US$ 750,000,000.00

 

 

 

Format

 

Rule 144A / Reg S

 

 

 

Trade Date

 

April 8, 2013

 

 

 

Settlement Date

 

April 15, 2013 (T+5)

 

 

 

Maturity

 

April 15, 2023

 

 

 

Interest Payment Dates

 

April 15 and October 15, commencing October 15, 2013

 

 

 

Coupon

 

4.75%, semi-annual in arrears; 30/360 count basis

 

 

 

Clearing

 

The Depository Trust Company (DTC) / Euroclear / Clearstream

 

 

 

Listing

 

Luxembourg Stock Exchange (Euro MTF)

 

The geographic distribution of the offering is as follows: 49% United States, 35% Europe, 15% Latin America and 1% Asia. The majority of buyers of the bonds were Fund Managers, Private Banks, Insurance Companies and banks. As a result of the meaningful demand for the offer, the coupon closed at the lowest cost ever reached by the Company in the international market. The net proceeds from the offering will be used to refinance the Company’s indebtedness and for general corporate purposes.

 

This notice shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the bonds in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. The bonds are being offered to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in offshore transactions outside the United States in accordance with Regulation S thereunder. The bonds have not been registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.

 

Rio de Janeiro, April 9, 2013.

 

Andre Pires de Oliveira Dias

Executive Vice President

Director of Investor Relations