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Odebrecht Agroindustial says concluded $3.3 bln bank loan restructuring

Published 2016-07-05, 11:26 a/m
© Reuters. Odebrecht Agroindustial says concluded $3.3 bln bank loan restructuring
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SAO PAULO, July 5 (Reuters) - Odebrecht Agroindustrial SA,
the sugar and ethanol unit of engineering conglomerate Grupo
Odebrecht SA, has concluded the restructuring of 11 billion
reais ($3.3 billion) in bank loans, with a cash infusion from
the parent company.
In a statement on Tuesday, Odebrecht said the conglomerate
will transfer 4 billion reais ($1.2 billion) in cash and 2
billion reais ($608 million) in assets into the unit. Part of
the cash infusion will be used to immediately repay the banks.
Alexandre Perazzo, chief financial officer at Odebrecht
Agroindustrial, said in the statement that debt maturities were
extended to 13 years and that the new debt structure is better
aligned with the company's cash flow.
Rothschild and Virtus, a São Paulo-based financial advisory
boutique specializing in distressed firms, advised Odebrecht
Agroindustrial, the second largest ethanol producer in Brazil.
The unit was forced to refinance its debt as Grupo Odebrecht
grapples with a probe into corruption at state-controlled firms.
Controlling shareholder and former Chief Executive Marcelo
Odebrecht has been in jail for more than a year.
Odebrecht has been trying to sell assets in Latin America to
raise cash. Last month the company announced the sale of a Peru
toll road project to Brookfield Asset Management Inc BAMa.TO .

($1 = 3.29 Brazilian reais)

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