Debt reprofiling preserves around R$4.3 billion in cash reserves over the next four years;
Average debt term goes from 22 to 72 months, with a reduction of 1.5 pp in the average cost.
SÃO PAULO, May 1, 2024 /PRNewswire/ -- Grupo Casas Bahia has just closed an agreement with their main creditors, Bradesco and Banco do Brasil, which will preserve R$4.3 billion in cash reserves until 2027, of which R$1.5 billion just in 2024. The agreement includes a grace period of 24 months for interest payments and 30 months for principal payments. The average amortization period goes from 22 to 72 months, with a reduction of 1.5 pp in the average cost, which represents a saving of R$400 million during the period.
"We are very pleased to have been able to achieve this debt reprofiling, which was only possible thanks to the successful advancement of the operational levers of our Transformation Plan. The agreement reflects confidence in our plan and in the future of the company", highlights Renato Franklin, CEO of the Group.
The operation has a restricted scope, that is, it only includes unsecured financial debts, such as debentures and CCBs issued with banks. With the debt prolongation and cost reduction, the step brings even more confidence and security to all the Group's suppliers, partners, customers, and employees.
"This agreement, already approved by our main financial creditors, was among our priority goals for the year and, thanks to the work already done so far, we were able to complete it ahead of schedule", adds Franklin.
The Grupo Casas Bahia's Transformation Plan is making strong progress. In the last quarter of 2023, the Company once again recorded a positive free cash flow, signaling that the restructuring of the business is paying off.
About Grupo Casas Bahia
Grupo Casas Bahia is present in the minds, hearts and homes of Brazilians, with e-commerce and stores under the Casas Bahia and Ponto brands; online sales at Extra.com.br; banQi's financial solutions; the Bartira furniture factory, and the logtech Asap Log. Constantly evolving, today it's the relationship and consumption platform for Brazilians, wherever, whenever, and however they want. The company invests their efforts beyond retail, presenting a shopping journey that places the customer as its main focus. To this end, it develops unique levers that enable the best experience through offers of products, services, financial and logistics solutions.
With around 40 thousand employees, Grupo Casas Bahia has had public capital at B3 since 2013, maintaining a strong operation in more than 400 municipalities, 22 states and the Federal District. Through the most digital and robust logistics network in Brazil, it connects around 1.1 thousand physical stores, 29 distribution centers and delivery hubs to around 97 million customers, offering products, credits, financial services and solutions developed with the highest technology.
SOURCE Grupo Casas Bahia