Lojas Renner sets up second debt sale in a month

Lojas Renner sets up second debt sale in a month

Debenture Capital Markets Debt Corporate & Sovereign Strategy Fixed Income Coronavirus Rule 476 Regulation Brazil Latin America

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Brazilian clothing retailer Lojas Renner said it plans to issue BRL500 million in debentures in the local market, following the sale of one-year notes for the same amount in mid-April.

Lojas Renner will sell BRL300 million worth of two-year notes at the DI interbank lending rate plus 3% and BRL200 million worth of 2.5-year notes at the DI plus 3.04%, it said in a securities filing. The sale is scheduled to take place on May 5, it added.

The Porto Alegre-based company will use the proceeds to add to working capital and maintain "the minimum strategic level of cash flow," it said.

Just over two weeks ago, Lojas Renner sold BRL500 million worth of one-year debentures at the DI plus 2.96% in a deal arranged by Bradesco BBI.

The retailer closed its stores in Brazil, Argentina and Uruguay on March 19 as part of region-wide efforts to slow the spread of the coronavirus. It announced on April 23, however, that it would start reopening stores in line with local ordinances.