Fibria Offers to Buy Back $690 Million in Bonds

Brazilian pulp and paper producer Fibria Celulose SA, Sao Paulo, which has struggled with high debt in recent years, plans to repurchase $690.2 million in bonds maturing in 2020 from investors. In a securities filing this past week, Fibria said the deal would be financed by about 1.4 billion reais ($578.5 million) in land sales and would help it save about $52 million a year in interest payments.

The additional expense associated with the bond repurchase would impact on its first-quarter results, the company added.

Guilherme Perboyre Cavalcanti, CFO and investor relations director, told investors on a conference call last Thursday the company has now achieved the financial indicators required to qualify as an investment-grade company.

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