Ultrapar Readies Chunky Local Takeout

Ultrapar, the Brazilian energy distributor, has filed to issue a BRL1.2bn local debenture. The offering is designed to take out an equal sized 1-year promissory note via Bradesco that was raised in December of 2008, Pedro Wongtschowski, CEO of Ultrapar, tells LatinFinance. The new deal carries a 3-year tenor and has been guaranteed by Bradesco, the lead bank, at DI+300bp. The promissory note that matures this December carries a rate of CDI+360bp, according to a filing on the deal. In March, the company raised a BR500m 3-year CCB note with Caixa Economica Federal at a rate of 120% of CDI. Ultrapar’s total debt stands at BRL4.1bn, says Maristela Akemi Utumi, head of the company’s IR department. Based on the last 12 months, net debt to Ebitda is 2.0x, though using analyst forecasts for the forward 12 months the rate comes down to around 1.5x, says Wongtschowski. Ultrapar, which has done a series of large acquisitions in the past years, including Ipiranga and Texaco assets, says it is not eyeing big ticket M&A at the moment, though it sees an opportunity for consolidation in the Brazilian energy distribution and logistics market.