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Unformatted text preview: withholding tax. However, should the
instruments be redeemed prior to their original final maturities, the Company will be obligated to
pay such tax on both past and future payments at rates from 12.5% through 15%, depending
upon the country to which such payments are remitted.
In November 1994, the Company, through Aracruz Trading S.A. entered into a U.S.$ 100
million Euro-Commercial Paper program, guaranteed by the Company, with maturities through
1997 and with interest negotiated as each tranche is released. The Company has drawn down
and repaid several tranches under this program. On September 2, 1998, renewal of this
26 Aracruz Celulose S.A.
Notes to Consolidated Financial Statements
Expressed in thousands of United States dollars
(unless otherwise stated) program was approved by the Brazilian Central Bank for a 3-year term, in conjunction with an
increase in the amount from U.S.$ 100 million to U.S.$ 200 million. The Company did not
draw down on this facility during 2000.
In February 1995, the Company, through Aracruz Trading S.A., signed a financing agreement
with a special-purpose entity (SPE) under which such entity received from a trust and advanced
to the Company, as a first phase of a U...
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- Spring '08