Reuters: Regulatory News: Brazil's Suzano raises share offering to boost capital

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Brazil's Suzano raises share offering to boost capital Jun 11th 2012, 12:25 Mon Jun 11, 2012 8:25am EDT * Suzano to sell more stock in follow-on offering * Pricing of transaction scheduled for end of June SAO PAULO, June 11 (Reuters) - Suzano Papel e Celulose , Brazil's second-largest pulp producer, will sell more of its stock than initially planned in a share offering this month as part of plans to cut debt and strengthen its capital base. The Salvador, Brazil-based company said in a newspaper advertisement that it had increased the amount of common stock it will offer to 96.67 million shares from about 85 million shares originally. In addition, Suzano ramped up the number of Class A preferred shares on offer to 197.98 million from 168.8 million previously. The company will put 12,267 Class B preferred shares up for sale at the offering. Considering the amount of Class A shares to be offered, the deal could help Suzano raise up to 1.22 billion reais ($603 million) at Friday's closing prices, according to Thomson Reuters calculations. The shares traded at 4.87 reais at the end of last week. The other two classes of stock are seldom traded. A tumble in operational earnings, a surge in costs and steep currency swings have forced the company and larger rival Fibria to shed assets and issue new shares to reduce its debt. Shareholders of Suzano, including the controlling Feffer family, have pledged to buy their portion of the offering to avert dilution. The company hired the investment banking units of BTG Pactual and JPMorgan Chase & Co to handle the transaction. Pricing for the shares is expected by June 28. Link this Share this Digg this Email Reprints

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