Gerdau S.A. Unveils Results of Completed Tender Offer

Author: Dylan Bailey Updated: 06-09-2025 10:10 PM

Gerdau S.A. Announces Completion of Cash Tender Offer

In a significant financial movement, Gerdau S.A. (NYSE: GGB) has completed its tender offer for all outstanding 4.875% notes due in 2027, originally issued by Gerdau Trade Inc. This latest development has captured the attention of investors as it reflects Gerdau's commitment to managing its debt effectively.

Details of the Tender Offer

The tender offer, which was initiated to purchase the outstanding notes for cash, highlights Gerdau's strategic approach to optimizing its capital structure. The offer accepted all notes that were tendered on time, showcasing the strong interest from noteholders. Notably, this tender offer reflects Gerdau's proactive measures to enhance its financial position in the marketplace.

Key Information of the Notes

As part of the announcement, Gerdau disclosed essential details regarding the notes involved in the offer. The 4.875% notes, set to mature in 2027, had a principal amount outstanding of approximately US$418.244 million before the offer. Gerdau successfully tendered US$237.646 million of those notes, significantly decreasing its outstanding debt to US$180.598 million post-settlement. This action is expected to create a more favorable financial environment for the company.

Consideration Offered

For those who participated in the tender offer, Gerdau provided a consideration of US$1,007.83 per US$1,000 principal amount for the notes tendered and accepted for purchase. This amount reflects Gerdau's competitive standing in the market and indicates its strategic pricing approach to managing its debt obligations.

Settlement Process and Future Steps

Following the expiration of the offer, which concluded at 5:00 PM New York City time, Gerdau has outlined a prompt settlement process. The settlement for the tendered notes is anticipated to occur within just three business days, marking June 12 as the expected settlement date. This quick turnaround showcases Gerdau's dedication to maintaining trust and transparency with its investors.

Investor Relations and Support

For further details, Gerdau invites interested parties to consult the various documents related to the tender offer. The information is readily accessible, reflecting Gerdau's commitment to clear communication with its stakeholders. They can reach out to the Tender and Information Agent for inquiries and assistance regarding the offer.

Gerdau's Dealer Managers

Gerdau Trade has engaged some well-respected financial institutions to act as dealer managers for this crucial tender offer. These firms include BofA Securities, Goldman Sachs, J.P. Morgan, and Morgan Stanley. This collaboration underscores Gerdau's commitment to maintaining high standards in its financial dealings.

Frequently Asked Questions

What does the tender offer by Gerdau S.A. involve?

The tender offer involves Gerdau purchasing its outstanding 4.875% notes due in 2027 for cash, demonstrating its strategic financial management.

What was the total principal amount of notes before the offer?

Before the offer, the total principal amount outstanding was approximately US$418.244 million.

How much was successfully tendered in the offer?

A total of US$237.646 million of the notes were successfully tendered under the offer.

What is the expected settlement date after the tender offer?

The expected settlement date for the tendered notes is June 12, following the expiration of the offer.

Who can I contact for more information about the offer?

For information regarding the tender offer, Gerdau has provided contacts for the Tender and Information Agent, and the dealer managers are also available for assistance.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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