Odebrecht Finance Ltd
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U.S.$500,000,000 Odebrecht Finance Ltd. (incorporated with limited liability in the Cayman Islands) 6.00% Notes due 2023 Unconditionally and Irrevocably Guaranteed by Construtora Norberto Odebrecht S.A. (incorporated in the Federative Republic of Brazil) Odebrecht Finance Ltd., or the issuer, is offering U.S.$500,000,000 aggregate principal amount of its 6.00% notes due 2023, or the notes, bearing interest at 6.00% per year. The notes will mature on April 5, 2023. Interest on the notes will accrue from April 5, 2011 and will be payable on April 5 and October 5 of each year, commencing on October 5, 2011. The issuer or the guarantor may, at its option, redeem the notes, in whole or in part from time to time, at any time, by paying a “make whole” redemption price equal to the greater of (1) 100% of their principal amount and (2) the applicable “make whole” amount described under “Terms and Conditions— Optional Redemption,” in each case plus accrued and unpaid interest and additional amounts, if any to but excluding the redemption date. The issuer or the guarantor may also redeem the notes in whole, but not in part, at a price equal to 100% of their principal amount plus accrued and unpaid interest to the redemption date at any time upon the occurrence of specified events regarding Brazilian or Cayman Islands tax law, as set forth in this offering memorandum. The issuer or the guarantor will be required to repurchase all of the notes at 101% of their principal amount upon the occurrence of a change of control that results in a ratings decline of the notes. See “Terms and Conditions—Covenants—Repurchase of Notes upon a Change of Control.” Construtora Norberto Odebrecht S.A., or CNO, has unconditionally and irrevocably guaranteed the full and punctual payment of principal, interest and all other amounts that may become due and payable in respect of the notes. The guaranty will rank equally with the other unsecured, unsubordinated indebtedness of CNO. The issuer is a wholly-owned subsidiary of Odebrecht S.A., CNO’ s parent company, and is not a subsidiary of CNO. CNO is a wholly-owned subsidiary of Odebrecht S.A. We have applied to list the notes on the Official List of the Luxembourg Stock Exchange and to trade the notes on the Euro MTF Market of that exchange. See “Listing and General Information.” Investing in the notes involves risks. See “Risk Factors” beginning on page 13. Price: 100% plus accrued interest, if any, from April 5, 2011 The notes (including the guaranty) have not been registered under the U.S. Securities Act of 1933, as amended, or the Securities Act. The notes may not be offered or sold within the United States or to U.S. persons, except to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A and to certain non-U.S. persons in offshore transactions in reliance on Regulation S. You are hereby notified that sellers of the notes may be relying on the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A. For more information about restrictions on transfer of the notes, see “Transfer Restrictions.” We expect that delivery of the notes will be made to investors in book-entry form through The Depository Trust Company, or DTC, for the accounts of its participants, including Euroclear Bank S.A./N.V., as operator of the Euroclear System, and Clearstream Banking, socie´te´ anonyme, on or about April 5, 2011. Joint Bookrunners and Joint Lead Managers BofA Merrill Lynch HSBC The date of this offering memorandum is March 25, 2011. TABLE OF CONTENTS ENFORCEMENT OF CIVIL LIABILITIES ........... v MANAGEMENT’S DISCUSSION AND PRESENTATION OF FINANCIAL AND ANALYSIS OF FINANCIAL CONDITION OTHER INFORMATION.................................. vii AND RESULTS OF OPERATIONS OF CNO.. 30 FORWARD-LOOKING STATEMENTS................ x BUSINESS ............................................................. 45 EXCHANGE RATES............................................. xii THE ISSUER.......................................................... 64 SUMMARY ............................................................. 1 MANAGEMENT ................................................... 65 THE OFFERING...................................................... 8 PRINCIPAL SHAREHOLDERS ........................... 68 SUMMARY FINANCIAL AND OTHER RELATED PARTY TRANSACTIONS................. 69 INFORMATION OF CNO................................. 11 TERMS AND CONDITIONS................................ 70 RISK FACTORS .................................................... 13 TAXATION ........................................................... 92 USE OF PROCEEDS ............................................. 23 PLAN OF DISTRIBUTION................................... 97 CAPITALIZATION ............................................... 24 TRANSFER RESTRICTIONS............................. 103 SELECTED FINANCIAL AND OTHER VALIDITY OF NOTES ....................................... 105 INFORMATION OF CNO................................. 25 INDEPENDENT ACCOUNTANTS.................... 105 LISTING AND GENERAL INFORMATION..... 106 INDEX TO FINANCIAL STATEMENTS ...........F-1 - i - Unless otherwise indicated or the context otherwise requires, all references in this offering memorandum to “Construtora Norberto Odebrecht S.A.,” “CNO,” “our company,” “we,” “our,” “ours,” “us” or similar terms refer to Construtora Norberto Odebrecht S.A., and all references to “Odebrecht Finance” or the “issuer” refer to Odebrecht Finance Ltd., the issuer of the notes and a wholly-owned subsidiary of Odebrecht S.A., or Odebrecht. The term “Brazil” refers to the Federative Republic of Brazil, and the phrase “Brazilian government” refers to the federal government of Brazil. We, having made all reasonable inquiries, confirm that the information contained in this offering memorandum with regard to us is true and accurate in all material respects, that the opinions and intentions expressed in this offering memorandum are honestly held, and that there are no other facts the omission of which would make this offering memorandum as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. We accept responsibility accordingly. ____________________________ This offering memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, any note offered hereby by any person in any jurisdiction in which it is unlawful for such person to make an offer or solicitation. Neither the delivery of this offering memorandum nor any sale made hereunder shall under any circumstances imply that there has been no change in our affairs or that the information set forth in this offering memorandum is correct as of any date subsequent to the date of this offering memorandum. ____________________________ This offering memorandum has been prepared by us solely for use in connection with the proposed offering of the notes. We, as well as HSBC Securities (USA) Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, or the initial purchasers, reserve the right to reject any offer to purchase, in whole or in part, for any reason, or to sell less than all of the notes offered by this offering memorandum. You must (1) comply with all applicable laws and regulations in force in any jurisdiction in connection with the possession or distribution of this offering memorandum and the purchase, offer or sale of the notes, and (2) obtain any required consent, approval or permission for the purchase, offer or sale by you of the notes under the laws and regulations applicable to you in force in any jurisdiction to which you are subject or in which you make such purchases, offers or sales, and neither we nor the initial purchasers have any responsibility therefor. See “Transfer Restrictions” for information concerning some of the transfer restrictions applicable to the notes. You acknowledge that: • you have been afforded an opportunity to request from us, and to review, all additional information considered by you to be necessary to verify the accuracy of, or to supplement, the information contained in this offering memorandum; • you have not relied on the initial purchasers or any person affiliated with the initial purchasers in connection with your investigation of the accuracy of such information or your investment decision; and • no person has been authorized to give any information or to make any representation concerning us or the notes other than those as set forth in this offering memorandum. If given or made, any such other information or representation should not be relied upon as having been authorized by us or the initial purchasers. In making an investment decision, you must rely on your own examination of our business and the terms of this offering, including the merits and risks involved. The notes have not been recommended by any federal or state - ii - securities commission or regulatory authority. Furthermore, these authorities have not confirmed the accuracy or determined the adequacy of this offering memorandum. Any representation to the contrary is a criminal offense. The offering is being made in reliance upon an exemption from registration under the Securities Act, for an offer and sale of securities that does not involve a public offering. The notes are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and applicable state securities laws, pursuant to registration