U.S.J. – AÇÚCAR E ÁLCOOL S.A. ANNOUNCES EXPIRATION OF, AND RECEIPT OF RECOVERY ELECTIONS IN CONNECTION WITH, THE ELECTION SOLICITATION FOR ITS 9.875% SENIOR NOTES DUE 2019, 9.875%/12.00% SENIOR SECURED PIK TOGGLE NOTES DUE 2021 AND 9.875%/10.500% SENIOR SECURED PIK TOGGLE NOTES DUE 2023

SÃO PAULO, April 5, 2022 /PRNewswire/ — U.S.J. – Açúcar e Álcool S.A. (the “Company”), a leading sugar and ethanol producer in the Center-South region of Brazil, announced today that it terminated its solicitation of recovery elections (the “Election Solicitation”) from the holders of the 9.875% senior notes due 2019 (the “2019 Notes”), 9.875%/12.00% senior secured PIK toggle notes due 2021 (the “2021 Notes”) and 9.875%/10.500% senior secured PIK toggle notes due 2023 issued by the Company (the “2023 Notes” and, together with the 2019 Notes and the 2021 Notes, the “Notes”) for the purpose of allowing the holders to make a Recovery Election for the payment of their respective Notes in connection with the Company’s judicial restructuring plan (the “RJ Plan”).

In the context of the Company’s restructuring process, the Election Solicitation aimed primarily to allow holders to decide whether to receive their claims through the Alternative Payment Option or Default Recovery, as defined in the Election Solicitation statement of the Company, dated December 28, 2021 (the “Election Solicitation Statement”). Holders who selected the Alternative Payment Option are expected to receive their claims under the Notes in Payment in Kind, which will be effected through the exchange of the Notes for an interest in a Liquidating Trust to be created by the Ad Hoc Group of holders (collectively, the “Ad Hoc Group”). Holders who did not elect to choose the Alternative Payment Option or did not submit a valid Election Recovery, will have their claims restructured and paid in accordance with Default Recovery. 

The Election Solicitation Statement contains important information that holders of Notes should carefully read before any decision is made with respect to the Election Solicitation. Terms not defined in this press release shall have the meaning ascribed to them in the Election Solicitation Statement. The Election Solicitation expired at 5:00 p.m. (New York City time) on April 2, 2022 (the “Expiration Date”). The Election Solicitation was made solely by means of the Election Solicitation Statement. As of the Expiration Date, the Company received Recovery Elections from the holders of 96.58% in aggregate principal amount of the outstanding Notes (corresponding to 79.25% in principal amount of the 2019 Notes, 58.04% of the 2021 Notes and 97.58% of the 2023 Notes).

Only holders of record of the Notes (or their duly designated proxies will be entitled to make a Recovery Election pursuant to the Election Solicitation. Any questions or requests for assistance or for copies of the Election Solicitation Statement or related documents may be directed to the Information and Tabulation Agent at its telephone number set forth below.

The Information and Solicitation Agent for the Election Solicitation is:

D.F. King & Co., Inc.
Toll Free: +1 (866) 797-6867
All Others Call: +1 (212) 269-5550
E-mail: [email protected]

THIS PRESS RELEASE IS NEITHER AN OFFER TO SELL NOR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THIS ANNOUNCEMENT IS ALSO NOT A SOLICITATION OF RECOVERY ELECTION. NO RECOMMENDATION IS MADE AS TO WHETHER HOLDERS OF THE NOTES SHOULD MAKE ANY RECOVERY ELECTION.

Important Notice Regarding Forward-Looking Statements:

This press release contains certain forward-looking statements. Statements that are not historical facts, including statements about our perspectives and expectations, are forward looking statements. The words “expect”, “believe”, “estimate”, “intend”, “plan” and similar expressions, when related to the Company and its subsidiaries, indicate forward-looking statements. These statements reflect the current view of management and are subject to various risks and uncertainties. These statements are based on various assumptions and factors, including general economic, market, industry, and operational factors. Any changes to these assumptions or factors may lead to practical results different from current expectations. Excessive reliance should not be placed on those statements. Forward-looking statements relate only to the date they were made and the Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

SOURCE U.S.J. – Açúcar e Álcool S.A.

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