RESEARCH: JSL - new USD bond extends debt maturities, allows focus on delevering - Debtwire

RESEARCH: JSL – new USD bond extends debt maturities, allows focus on delevering

04 July 2022 - 07:22 pm UTC

JSL extended its maturity profile and increased its cash position by BRL 1.42bn in July, through the issuance of USD 325m (BRL 1.02bn) in bonds maturing July 2024, and BRL 400m in domestic debentures at its Movida rental car subsidiary, which mature 2019-2022.

 

The Brazilian transportation and logistics specialist is in the process of addressing BRL 2.79m in debt maturities through December 2018 via prepayments and extensions. JSL is also in negotiations with creditors to extend debt maturities totaling BRL 3.9bn for the years 2019-2021.

 

Net debt declined to BRL 5.17bn at June 2017 from BRL 5.26bn at December 2016. Net debt to EBITDA reached 4.76x for the LTM ended June 2017, compared to 5x for 2016, and management plans to continue focusing on deleveraging in order to stay within covenant limits.The bond indenture contains a covenant that limits the company’s ability to incur new debt if leverage exceeds 4.75x through 31 December 2018.

 

CLICK HERE to access Debtwire’s credit report on JSL