Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden - S&P Global Ratings’ Credit Research

Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden

Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden - S&P Global Ratings’ Credit Research
Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden
Published May 18, 2023
2 pages (1146 words) — Published May 18, 2023
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Abstract:

This report does not constitute a rating action. SAO PAULO (S&P Global Ratings) May 18, 2023--S&P Global Ratings today said Movida Participacoes S.A. 's (Movida; BB-/Stable/--, brAA+/Stable/--) announcement of a tender offer for the repurchase of up to $375 million of its only outstanding senior unsecured bond of $800 million due 2031, issued by Movida Europe S.A., is opportunistic by nature and will slightly reduce the company's interest burden. Movida's senior notes are currently trading below par at around 75%, according to the company, and the repurchase considers an early tender premium of $30 to bondholders. While the tender offer will reduce debt and the interest burden, it won't materially affect leverage in 2023. We continue to expect an EBIT

  
Brief Excerpt:

...May 18, 2023 This report does not constitute a rating action. SAO PAULO (S&P Global Ratings) May 18, 2023--S&P Global Ratings today said Movida Participacoes S.A.'s (Movida; ##-/Stable/--, brAA+/Stable/--) announcement of a tender offer for the repurchase of up to $375 million of its only outstanding senior unsecured bond of $800 million due 2031, issued by Movida Europe S.A., is opportunistic by nature and will slightly reduce the company's interest burden. Movida's senior notes are currently trading below par at around 75%, according to the company, and the repurchase considers an early tender premium of $30 to bondholders. While the tender offer will reduce debt and the interest burden, it won't materially affect leverage in 2023. We continue to expect an EBIT interest coverage ratio close to 1.4x and funds from operations to debt of around 12% in 2023, but these metrics should improve to close to 2x and 20% by 2024 with the lower interest burden. The announced repurchase has no rating...

  
Report Type:

Bulletin

Ticker
MOVI3@BN
Issuer
Movida Participacoes S.A.
Sector
Global Issuers, Structured Finance
Country
Brazil
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden" May 18, 2023. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Movida-Participacoes-S-A-s-Bond-Repurchase-Of-Up-To-375-Million-Will-Slightly-Reduce-Interest-Burden-2989011>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Movida Participacoes S.A.'s Bond Repurchase Of Up To $375 Million Will Slightly Reduce Interest Burden May 18, 2023. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Movida-Participacoes-S-A-s-Bond-Repurchase-Of-Up-To-375-Million-Will-Slightly-Reduce-Interest-Burden-2989011>
  
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