Press Release
Mills announces plan to offer debentures
Rio de Janeiro, March 24, 2011 Mills Estruturas e Servios de Engenharia S.A. (Mills) announces, in compliance with CVM Instruction No. 358, of January 3, 2002, as amended, and for the purposes of Article 157, paragraph 4 of Law No. 6.404, of December 15, 1976, as amended, that the Board of Directors approved today the first issuance by the Company, in a single tranche, of non-convertible unsecured debentures (Debentures), in a maximum amount of R$ 270,000,000.00 (two hundred and seventy million reais), for placement in a public offering with restricted sales efforts, according to CVM Instruction No. 476, enacted on January 16, 2009, as amended (Offering). The aggregate amount of the Offering may range between R$ 200,000,000.00 (two hundred million reais) and R$ 270,000,000.00 (two hundred and seventy million reais), as determined in the procedure for collection of investment intentions, organized by the underwriters engaged for the purposes of the Offer (Bookbuilding Procedure) and subject to other conditions to be defined in the Private Deed of Indenture for the Public Offering of Debentures. The Debentures will mature in five years, subject to amortization of the nominal value in three annual installments starting on the third year of the issuance, and shall pay semi-annual interest, amount of which shall be determined in the Bookbuilding Procedure, limited in any case to a maximum of 114% of accrued variation of the CDI interest rate. The net proceeds from the Offering will be used for the redemption of all commercial papers, issued under the first public offering of the Company, totaling R$ 30 million, and the remainder being used for (a) the investments defined in the expansion plan of Mills, including estimated investments of R$ 337 million in 2011; (b) rearrangement of cash balance following disbursement of R$ 90 million in February 2011 in connection with the acquisition of 25% of the Rohr S/A Estruturas Tubulares total capital stock; and (c) general corporate purposes and expenses of the Company.
For further information, contact: +55-21-2123-3700 ri@[Link]
Alessandra Gadelha IR Officer
agadelha@[Link]
Camila Conrado Investor Relations
cconrado@[Link]
This press release may include declarations about Mills expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Mills cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: the Brazilian economy, capital markets, infrastructure, the real estate and oil & gas sectors, among others, and governmental rules that are subject to change without prior notice. To obtain further information on factors that may give rise to
results different from those forecast by Mills, please consult the reports filed with the Brazilian Comisso de Valores Mobilirios (CVM).