The financing agreements, as well as the debentures issued by the Company, require compliance with certain obligations, especially the restrictive covenants and the maintenance of certain duly audited financial indexes.
Note that article 4 of the Company’s Bylaws includes financial covenants that should be complied with. Such statutory covenants are as follows:
- a) consolidated net debt must be equal to or less than 3x of the accumulated 12- month EBITDA (Earnings Before Interest, Income Taxes including Social Contribution on Net Income, Depreciation and Amortization);
- b) total Liabilities must be equal to or less than the Shareholders’ Equity; and
- c) accumulated 12-month EBITDA must be greater than 1.2x the Debt Service.
Paragraph One: The goals established in items “a” and “b” of item IX may be changed for cyclical reasons, subject to justification and specific approval by the Board of Directors, respecting the following limits:
- a) consolidated net debt may reach a maximum of 4x of the accumulated 12-month EBITDA; and
- b) total Liabilities must reach a maximum of 1.2x the Shareholders’ Equity.
Below, the evolution of these indicators in the third quarterly of 2024 and years ended in 2023, 2022, 2021 and 2020:
