Investor Relations

POR

Indebtness and Ratings

Indebtedness and Financial Investments

Gross debt on March 31 was BRL20,214 million, a BRL768 million increase in relation to the end of 4Q18, mainly due to new issuances for increasing maturity profiles and to the anticipated debt retiring for certain shortly due facilities. Of total debt, BRL14,874 million, or 74% (US$3,817 million) is US dollar-denominated and incorporating Real to US Dollar rate swaps. Worthy of mention in the period was the Company’s continued work on liability management implemented in 2018, which through debt rollovers was instrumental in increasing average loan maturities from 48 months in 4Q18 to 52 months at the end of the quarter:  37 months for loans in domestic currency and 60 for loans in foreign currencies. Liability management work also reduced short-term debt from 10% at the end of 2018 to 6% at the end of 1Q19, but still maintaining average cost of loans flat, local currency debt closing the quarter at 7.7% p.a. and  currency denominated debt at exchange variation plus 5.2%.

The company’s position in cash and cash equivalents at the end of the quarter amounted to BRL7,460 million, BRL413 million more than at the end of the 4Q18, also explained by new loans for rolling over company debt.  In addition to this amount, Klabin contracted a revolving credit facility of US$500 million in the quarter, with a 5-year availability period and financial cost of 0,4% per year. If Klabin uses this credit line, the cost will be Libor cost + 1.35% on withdrawals. As a result, Klabin's liquidity position at the end of 1Q19, that is, cash and cash equivalents plus the revolving credit line, was BRL9,408 million, equivalent to the total amount for amortizations of maturing loans over the next 56 months

Consolidated net debt on March 31, 2019 amounted to BRL12,754 million, a BRL355 million increase compared with December 31, 2018 largely reflecting the negative variation in working capital, financial expenses on the Company’s cash flow generation and FX rate fluctuations during the period. On the other hand, the strong increase in adjusted EBITDA enhanced Klabin’s process of deleveraging, the Company ending the quarter with an adjusted net debt/EBITDA ratio of 3.0x, a 0.1x reduction compared to the end of 4Q18.

Rating

Agency Rating Outlook Latest Update
Standard & Poor's BB+ Stable Jun-17
Fitch Ratings BB+ Stable May-19
Last updated on

Close