On September 30, 2019, gross debt reached BRL 3,148.3 million, up BRL 133.4 million from the balance on December 31, 2018, due mainly to the BRL 100 million BNDES disbursement for the acquisition of machinery and equipment for reinforcement and improvement investments.

In accordance with CPC 06 (R2), according to which, starting January 2019, the Company must recognize, for all leasing contracts, liabilities for future payments with the exception of short-term and/or low-value agreements. BRL 52.2 million were added to IFRS gross debt regarding the Company’s leases. Therefore, total IFRS debt was BRL 3,200.5 million. Regulatory accounting remains unchanged.

The increase in the Company’s availabilities is justified, mainly, by the operational cash generation during the period. Therefore, net debt reached BRL 1,943.8 million at the end of September 2019 vs. BRL 2,317.3 million in December 2018. The Net Debt/Adjusted EBITDA ratio was 0.8x in September 2019.

The company is in compliance with the covenants and requirements for all of its issues. For the years 2019 and 2020, the most restrictive Net Debt/EBITDA index is 3.0x.

The average cost of consolidated debt was 7.1% p.a. on September 30, 2019 vs. 7.9% p.a. on December 31, 2018, because of the decrease in IPCA between periods. IPCA is the company’s main debt index, as well as its main index for revenue. The average maturity of the consolidated debt on September 30, 2019, was 3.3 years.

Debt Amortization Schedule (BRL million)

Debt Breakdown


 
Promissory Notes Total offering Nominal unit value Series Issue Tenor Remuneration Documents
1st Issue R$ 200 million R$ 1 million Single 12/9/2008 I80 days from Issue date 120% of CDI -
2nd Issue R$ 200 million R$ 1 million Single 04/24/2009 I80 days from Issue date 119.5% of CDI -
3rd Issue R$ 200 million R$ 500 thousand Single 07/17/2009 I80 days from Issue date 106.5% of CDI
4th Issue R$ 200 million R$ 5 million Single 01/17/2011 360 days from Issue date 100% of CDI + 0.4% per year

-

5th Issue R$ 300 million R$ 10 million Single 07/11/2011 360 days from Issue date - CDI + 0.48 per year
6th Issue R$ 400 million R$ 1 million Single 01/04/2012 360 days from Issue date 104,9% of CDI -
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
3rd Issue R$ 500 million R$ 10 thousand Single Series 12/26/2013 12/26/2018 116,0% of CDI per year
4th Issue R$ 148.3 million R$ 1 thousand Single Series 07/15/2016 07/15/2021 IPCA + 6.04%


5th Issue

 
R$ 300.0 million R$ 1 thousand Single Series 02/15/2014 02/15/2024 IPCA + 5,04% per year (Portuguese Only) (Portuguese Only) (Potuguese Only) (Portuguese Only) (Potuguese Only) (Potuguese Only) (Potuguese Only)
(Portuguese Only)
Report Rating (FITCH)
(Potuguese Only)
6th Issue R$ 350 million R$ 1,000 Single 12/13/2017 12/13/2020 105,65% of CDI per year
7th Issue R$ 621.0 million R$ 1,000 Single 02/05/2018 04/15/2025
IPCA + 4,70  per year
8th Issue R$ 400.0 million R$ 1,000 4 series 12/20/2019 12/15/2029 and 12/15/2034 IPCA + 3.50 per year and IPCA + 3.80 per year
 
Promissory Notes Total offering Nominal Unit Value Series Issue Tenor Remuneration Documents
1st Issue R$ 70 million R$ 5 million Single Date to be determined 90 days 100% of CDI + 0.34% per year -
 
Promissory Notes Total offering Nominal Unit Value Series Issue Tenor Remuneration Documents
1st Issue R$ 180 million R$ 5 million Single 06/08/2011 120 days 100% of CDI + 0.40% per year -

2nd Issue

R$ 290 million R$ 10 million Single 04/27/2012 120 days 106,5% of CDI
3rd Issue 720 million R$ 10 million Single 09/17/2012 120 days 106,5% of CDI
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
1st Issue R$ 420 million R$ 1 million Single 09/15/2011 09/15/2012 106,5% of CDI per year
2nd Issue R$ 350 million R$ 10 thousand Single 03/18/2013 03/18/2025 IPCA + 5.5% per year
 
Debentures Total offering Nominal Unit Value Series Issue Maturity Remuneration Documents
1st Issue R$ 380 million R$ 1 thousand Single 10/15/2012 04/15/2014 106,5% of DI
 

Updated on November 7, 2019.