Brazil's Fibria offers to buy back $690 mln of bonds

SAO PAULO Thu Jan 30, 2014 8:08am EST

SAO PAULO Jan 30 (Reuters) - 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.