1 LTN Buy Trade Information
1 LTN Buy Trade Information
1 LTN Buy Trade Information
Part One
Sale of LTN Bond:
In a "normal" sale of the “LTN NOT POSTED on EuroClear electronic exchange", the bond´s
selling price may reach 22 % plus 2 % -3 % average commission of the “CURRENT PU” (market
value, which equates to (approx.) US$ 267 Million being paid to the Bond Owner. Even if the
LTNs are listed on BOVESPA (Brazilian electronic exchange system) and ready to trade, they are
not very marketable outside of Brazil for hard currency. Hard currency buyers are only interested
if the LTN is listed on EuroClear, mainly because, Euroclear stands behind the stated PU value
“at maturity” with full Banking responsibility and the buyer does not need to look to the Central
Bank of Brazil for financial comfort. Most LTN Owners are not willing or able to pay themselves
for the EuroClear registration. This registration could easily cost from US$ 200,000.00 to a price
of several Hundred Thousands more of US$ per LTN unit to list. Most Owners do not have the
knowledge and agency relationships required to quickly install, then market and sell their Bonds
on EuroClear. With this Trade Program, within a few days the owner’s LTN will have secured
both a EuroClear listing and an upgraded value from PU current value to PU maturity value that
equals about R$ 9 Billion or US$ 3.8 Billion. The goal of the joint sale of the LTN through
Trader and Trader’s J/V Selling Partner is to have the Bond Owner, after all costs, end up with no
less than US$ 475 Million.
With full cooperation from Bond Owner/Seller and provision of complete and correct
presentation of documentation, the projected timeline is presently from two to three weeks. The
sale is expected to take place within one to two weeks from posting on EuroClear. Should a sale,
given the above provisions being met, not be reached within four weeks from posting of the Bond
on EuroClear; Owner/Seller should have the right to withdraw from the sale.
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Part Two:
Private Placement of Partial Proceeds from LTN Sales Revenue
The amount dedicated for PPP will be deposited into a Credit Swiss Trust Bank account; then
these funds, as Private Placement protocol dictates, will be blocked in the account for the time of
trying in order to safely and securely support participation in the Private Placement Program. At
present, we are offered a twenty-week Trading program. As part of this, a High Yield Bank
Responsible and Managed Contract with the available Private Placement Trade Group will be
provided. The Bank Trade Contract comes with full banking responsibility and has a
nonperformance clause holding the Trader and the Trade Bank fully responsible. Bank Trade
Contracts are practically 100% risk free. The Contract is a guaranteed bank contract with an
internationally recognized, well reputed Bank. The Trader will present the Bank’s Trade Contract
to the Client’s Bank by the Trader, after compliance has been completed. The Bank Trade
Contract payouts are irrevocable.
There are no restrictions on the use of profits.
The Gross Revenue projected by Bank Trade Contract, over the twenty (20) week period and
based upon US$ 300 Million blocked for Program Support, is US$ 6 Billion for each US$ 300
Million increment. Gross Revenue is subject to: 1) Management Fees equal to thirty percent of
gross revenue; 2) Transaction Paymaster fees equal to one-half of one percent; 3) Agents
Commissions equal to ten percent of gross revenue, and 4) any potential, but currently unknown
taxes or other levies on Seller´s proceeds. In Summary, LTN Owner’s Gross Revenue, after
deduction of above costs as in 1, 2 and 3., should equal approximately US$ 4.0 Billion.
The foregoing "PPP" described above is a currently available Program from an independently
owned Trade Platform which is free to stop or change their program with minimum notice. In this
case, Trader will aim to find another program with similar net proceeds.
BASIC PROCEDURES
1] IN THE FIRST STAGE OF THE TRANSACTION THERE WILL BE A REQUIREMENT FOR THE LTN
OWNER TO PREPARE AND MAKE AVAILABLE THE LIST OF DOCUMENTS INCLUDED BELOW FOR
PRESENTATION TO THE LTN BUYER.
2] PARTICIPATING LTN OWNERS WILL BE ENTERING A Trader’s FULLY MANAGED SALES
PROGRAM. THEREFORE THERE IS A NEED FOR VARIOUS ACCOMPANYING AGREEMENTS BETWEEN
THE PARTIES THAT ALLOW TRADER TO ACT AND FACILITATE APPROPRIATELY. THE
CORRESPONDING AGREEMENT FORMS WILL BE INCLUDED OR HANDED OVER SEPARATELY.
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5. PROOF OF TAX PAYMENT UP TO DATE - DOCUMENTO FISCAL TESOURO
NACIONAL DO PAGAMENTO TOTAL DE IMPOSTOS (GRU)
6. CENTRAL BANK OF BRASIL VALID PERMIT OF EXPATRIATION - BANCO CENTRAL
DO BRASIL AUTORIZACAO VÁLIDA PARA TRANSPORTE DE ATIVO FINANCIERO
7. IN CASE OF CHANGE OF OWNERSHIP CERTIFICATE OF TRANSFER OF TITLE -
EM CASO DA TRANSMISSAO DO TITULO CERTIFICADO COORDENACAO-GERAL DE
CONTROLE DA DÍVIDA PÚBLICA CODIV
8. EXPERT´S DOCUMENTOSCOPIC EXAMINATION REPORT - LAUDO DE EXAME
PERICIAL DE GRAFODOCUMENTOSCOPIA
9. CIS OWNER - CIS PROPRIETÁRIO signed with wet blue ink
10. PASSPORT OWNER - PASSAPORTE PROPRIETÁRIO @ 130% SIZE – TAMANHO
11. THE FOLLOWING LETTERS PREPARED ON THE LETTERHEAD PAPER OF THE
OWNER/ SELLER AND SIGNED INDIVIDUALLY WITH WET BLUE INK.
a. INVENTORY OF ASSETS
b. LETTER OF INTENT TO SELL
c. HISTORY OF OWNERSHIP
d. AFFIDAVIT OF LEGAL OWNERSHIP
e. AFFIDAVIT OF NON-SUBMITTAL TO OTHERS
f. INDEMNIFICATION AND ATTESTATION
g. AUTHORIZATION TO PRESENT, VERIFY AND AUTHENTICATE
h. LETTER OF EXCLUSIVITY
i. GLOBAL CEASE AND DESIST
j. NON-SOLICITATION
NOTE: THE LETTERS AS NAMED IN THIS NUMBER 11. SHOULD NOT BE PREPARED AND SIGNED TOGETHER WITH
THE DOCUMENTATION NRO. 1. THROUGH 10., BUT ONLY AFTER BUYER´s SPECIAL FACILITATOR HAS CHECKED
AND ACCEPTED THE FOREGOING DOCUMENTATION. SAMPLE LETTERS WILL BE PROVIDED.
All documents must be properly scanned and converted into “JPEG / HORIZONTAL FORMATE
FILES”. The Scans must be of at least 300 dpi/High Resolution. Each file should only contain
one item topic only. If Owner´s own scanner does not provide scans of at least 300 DPI, they
need to seek out professional assistance, for example, a stationary or commercial printing shop.
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