By Brazil Stock Guide – Eldorado Brasil Celulose, controlled by J&F Investimentos, approved a plan to issue between $500 million and $750 million in overseas notes through its Austrian financing arm, Eldorado Intl. Finance GmbH, as the company moves to refinance existing liabilities and strengthen its capital structure.
Bond Structure and Guarantees
The transaction will be issued under Rule 144A and Regulation S. Eldorado also authorized fidejussory guarantees from both Cellulose Eldorado Austria GmbH and the Brazilian parent company, giving bondholders full credit backing across the group. The board granted management broad powers to negotiate final terms, including pricing, maturities, purchase agreements and the indenture.
According to the board’s deliberations, the proceeds will be used to repay specific debt instruments. Directors emphasized the need for flexibility and authorized all preparatory actions, enabling the deal to proceed quickly once market conditions allow.
What’s at Stake
The offering marks a new phase for Eldorado after J&F consolidated 100% ownership earlier this year. The deal could help the company extend its liability profile, reduce short-term refinancing risk and re-engage with global credit investors. It also underscores J&F’s strategy of simplifying the corporate structure and improving the company’s funding base.
The board called an extraordinary shareholders’ meeting to formalize the approval. A successful issuance will depend on investor appetite for emerging-market credit and broader conditions in the global bond market.
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