Light bondholders organize, approach advisors

Breaking News 27 March

Light bondholders organize, approach advisors

Light SA bondholders are starting to organize and have been approaching lawyers and financial advisors, according to two sources close to the matter. 

There is an “informal” group in place, which may hold 25%-30% of the outstanding amount of Light's USD 600m 4.375% 2026 bonds, the same source said. 

Bondholders have a conference call scheduled with a financial advisory firm this week, according to the first source.

The holders are also in talks with law firms in the state of Sao Paulo, especially the well-known firms who typically represent bondholders, the second source said. 

The Brazilian electricity distributor has been facing a critical financial situation involving contract renegotiations and has been working on a loan to raise proceeds to repay short-term debt. 

Light is also facing the possibility of the acceleration two series of domestic bonds. Both series – the eighth and the third – are due in 2026. The debt acceleration would trigger a cross-default.  

A meeting for domestic bondholders to analyze the matter was scheduled for 29 March. 

Potential lenders have sent a funding proposal to the Brazilian electricity distributor, as reported. 

The company has also been trying to renegotiate its distribution contract with the thermal generation company EDF Norte Fluminense.  

The 2026 bonds traded at 32.25 on 27 March, according to MarketAxess.

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