Braskem and JBS engage in major debt restructuring and exchange operations

Braskem is nearing a potential agreement to restructure approximately $11 billion in debt as part of its extrajudicial recovery process. Negotiations involve proposals for capital injections and the conversion of debt into equity. According to documents, the creditor proposal suggests a combined $4 billion through capital injections and debt conversion, while Braskem’s proposal suggests roughly $5 billion. Key components include a potential follow-on offering of $2.25 billion, with specific provisions for additional contributions by shareholders and creditors through 2029.

Separately, JBS has launched an offer to exchange up to $2.5 billion in senior notes in the United States market. The operation includes $1.5 billion in notes maturing in 2037 with a 5.625% annual interest rate, and $1 billion in notes maturing in 2057 with a 6.4% rate. The exchange aims to register the new notes under U.S. securities laws to fulfill commitments made to original bondholders. The company stated that the transaction will not result in new capital inflows, as the new notes will maintain substantially identical financial terms and contractual clauses to the original securities.