This initiative, which still needs the approval of creditors and internal decisions, can result in a significant decrease in leverage
The group has revealed a new strategic plan aimed at reducing its debt, which includes early conversion of R $ 1.57 billion into debentures into shares of the company. This initiative, which still needs the approval of creditors and internal decisions, can result in a significant decrease in leverage, allowing the company to have more resources for new investments.
If all debentures are converted, the company will issue 328.9 million new shares, which will represent 77.58% of its share capital. President Renato Franklin expressed confidence that this strategy will bring long term value, even if this implies the dilution of existing shareholders.
“It is better to have a smaller participation of a company that will be worth more in the future than maintaining a larger slice of a company waged by indebtedness.”
With the conversion of debentures, the total debt of Casas Bahia, which was $ 4.55 billion in the first quarter, could be reduced to $ 2.984 billion. This change would result in a significant drop in the relationship between net debt and EBITDA, which would go from 1.6 time to 0.8 time, improving the company’s financial health.
Posted by Nátaly Tenório
*Report produced with the aid of AI
