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