S 100 million to us 200 million the company did not

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: .S.$ 200 million program, U.S.$ 50 million, representing funds received by the trust through the private placement of trust certificates. In return, the Company securitizes the financing by selling to the SPE its current and future accounts receivable from designated customers. Concurrently, the SPE has assigned its right, title and interest on the certificates to the trust. Each month such collections in excess of contractual funding requirements are transferred to the Company. The financing bears fixed annual interest of 9.89% and has been fully repaid. The net proceeds were transferred to Aracruz Celulose S.A. as advances for future purchases of pulp. In July 1995, the Company completed the remaining U.S.$ 150 million phase of the securitization program, which has been structured similarly to the first phase described above. This second phase comprehends U.S.$ 38 million of five-year certificates with interest equal to one-month LIBOR plus 1.75%, which were fully redeemed during 1997, and U.S.$ 112 million of seven-yea...
View Full Document

This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

Ask a homework question - tutors are online