Brazilian pulp and paper producer Fibria Celulose SA, which has struggled with high debt in recent years, plans to repurchase $690.2 million in bonds maturing in 2020 from investors. In a securities filing late on Wednesday, Fibria said the deal would be financed by about 1.4 billion reais ($578.5 million) in land sales and would help it save about $52 million a year in interest payments.The additional expense associated with the bond repurchase would impact on its first-quarter results, the company added.Guilherme Perboyre Cavalcanti, chief financial officer and investor relations director, told investors on a conference call on Thursday the company has now achieved the financial indicators required to qualify as an investment-grade company.
Fibria Celulose SA, formerly Votorantim Celulose e Papel SA, is a Brazil-based company involved in the production and sale of short fiber pulp. Shares of FBR traded higher by 4.85% or $0.52/share to $11.24. In the past year, the shares have traded as low as $10.28 and as high as $13.34. On average, 909724 shares of FBR exchange hands on a given day and today's volume is recorded at 2443937.
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