Facing an embarrassment of riches, Brazilian exporters have been eschewing securitization as a financing option. Pulp producer Aracruz Celulose is taking it one step further, aiming to buy back up to $537 million in outstanding secured export notes issued by its securitization vehicle, Arcel Finance, the company said in a filing with the Securities and Exchange Commission.

In the filing, Aracruz said it was targeting $175 million outstanding in 6.361% notes due May 1, 2012, and $362 million in 7.048% notes maturing Sept. 1, 2011. The deals correspond to the outstanding unwrapped tranches issued off Arcel Finance. However, according to a source familiar with the company, Aracruz is just as keen on retiring an Arcel-issued bond wrapped by XLCA that is not mentioned in the filing. Initially sized at $250 million, those notes bear a 5.984% coupon and mature Feb. 1, 2009.

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