Paranapanema

BVA acted as sole legal adviser to a US investor in a BRL 100 million investment in Paranapanema S.A. (B3: PMAM3), through the subscription and payment for debentures convertible into shares of the company.

The transaction forms part of Paranapanema’s financial restructuring. The proceeds were allocated to the restructuring of the company’s debt, with a historical value of BRL 4.27 billion, owed to its creditors under the Global Agreement. Following completion of the transaction, approximately BRL 3.94 billion, representing 92.3% of the company’s total indebtedness, was extinguished.

In addition to the financial restructuring, the transaction also has a significant corporate component: upon conversion of the debentures, the investor will be entitled to approximately 83.6% of Paranapanema’s share capital.

Isabela Martins Xavier, Corporate and M&A Partner, led the transaction, supported by partners Felipe Barreto Veiga, from the M&A, Debt Capital Markets, Private Equity and Venture Capital practices, and Rafael Teixeira, from the Corporate, M&A, Private Equity and Venture Capital practices.

Willyan Braz, Corporate and M&A Coordinator, and Lethycia Florencio, Corporate and M&A Associate, also worked on the transaction.