Overview

• Anchor vehicles tied to BTG Pactual, Perfin and Cosan’s controllers committed R$7.25 billion to a 1.45 billion-share primary placement, with up to a 25% additional allotment, at R$5.00 per share.
• The company also outlined a rights offering of up to 550 million shares for holders of record on Sept. 19 at the same price, while capping combined new issuance at 2 billion ordinary shares.
• Cosan said proceeds will be used exclusively to renegotiate and repay financial debt in order to reduce leverage.
• The anchors will invest through a new holding company, with Aguassanta holdings participating until settlement, and Rubens Ometto remains the majority shareholder and chair as BTG and Perfin join as major partners.
• Pricing at R$5.00 reflects a discount to the last close reported by Valor, which said investors voiced concerns about dilution following the announcement.