CSN unit launches exchange offer for $1.3 billion 2028 notes

Eligible holders can swap each $1,000 of the 6.750% notes due 2028 for $746.15 of new 11.000% 2030 notes plus $253.85 in cash, with the offer set to expire on August 10, 2026.

Summary

Companhia Siderúrgica Nacional said its subsidiary CSN Inova Ventures has started an exchange offer for any and all outstanding 6.750% Senior Notes due 2028, seeking to replace them with 11.000% Senior Notes due 2030 and cash. The offer covers $1.3 billion of existing notes and is available only to Eligible Holders, including qualified institutional buyers under Rule 144A (U.S. private resale exemption) and certain non-U.S. investors under Regulation S (offshore securities safe harbor). For each $1,000 principal amount tendered and accepted, holders will receive $746.15 in new notes and $253.85 in cash, plus accrued interest. The transaction is paired with a consent solicitation to amend the existing indenture, and participation requires holders to tender notes and deliver consents together. The offer expires at 5:00 p.m. New York City time on August 10, 2026, unless extended, with settlement expected on August 12, 2026. A minimum of $910.0 million, or 70% of the outstanding 2028 notes, must be tendered and not withdrawn for the transaction to proceed. The new notes carry an 11.000% coupon that can step down by 50 basis points to 10.500% if at least $200 million of aggregate principal is reduced before February 12, 2028, and they may be redeemed at 100% of principal plus accrued and unpaid interest.

Terms & Concepts
  • Rule 144A: U.S. private resale exemption for institutions
  • Regulation S: Safe harbor for offshore securities offerings
  • indenture: Legal contract governing bond terms