A cross-border Linklaters team has advised longstanding clients LD Celulose S.A. (“LD Celulose”), LD Florestal S.A. (“LD Florestal”) and LD Celulose International (“LD International”) as lead counsel on the complex and innovative US$1 billion refinancing of their existing debt. LD Celulose operates a state-of-the-art dissolving wood pulp plant in Brazil. Both LD Celulose, LD Florestal and LD International are joint ventures between Lenzing AG, a publicly listed Austrian company and leading global producer of lyocell, modal, and viscose fibers for the textile and nonwoven industry, and Dexco, a publicly listed Brazilian company and leading manufacturer of industrialized wood panels, and major player in the metals, sanitaryware and tiles industries.
This transaction was structured as the issuance of US$650 million 7.950% green senior secured notes due 2032 and a US$350 million export prepayment secured term loan facility entered into with a syndicate of nine commercial banks. Implementing this structure required detailed negotiations with LD Celulose’s existing lenders to smoothly refinance its US$1.1 billion project finance debt. Additionally, coordinating a collateral structure that included assets located in various municipalities in Brazil and Austria added layers of complexity due to varying legal requirements. Implementing an escrow structure and detailed prepayment mechanics were necessary to ensure seamless payoff of the existing loans, guarantees, and liens.
The successful completion of this transaction required close collaboration between the Linklaters teams in Brazil, the US, and Germany. This coordinated effort ensured that all elements of the transaction were meticulously aligned, resulting in a smooth and effective refinancing process.
The cross-border Linklaters team was led by partners Matthew Poulter and Danelle Le Cren, alongside Thomas Lemouche (senior US associate), Madeleine Blehaut (associate), Mario Lercari (associate), and Paula Sobral (staff attorney), and the team in Germany (partner Marco Carbonare, and senior US associate John Hunt, and associate Sylvie Ritter), with key support from New York (partner Gabriel Grossman, senior counsel Janet Lee, counsel Andres Loera, and associate Maddy Hayes), Washington, DC (counsel Sterling Darling), and São Paulo (legal assistant Leticia Correa).
