Biofuel Shop Restructures Debt

Ecodiesel Brasil, the Brazilian biofuels shop, has restructured some BRL206m in debt following a period of financial difficulty related to the volatile nature of its sector and an overly aggressive capex program. The restructuring includes a BRL184.8m 4-year credit facility with a 1-year grace period from Bradesco, Fator, Fibra, BMG, Daycoval and Cedula. People close to the borrower say cost of the funds is in line with the company’s existing debt, understood to be in the 500bp-600bp over CDI range. The company also gained extensions on a BRL30.5m bank note with Banco Real, and restructured BRL35.2m in debt from entities it does business with. The company tapped G5 Advisors, a Sao Paulo-based boutique, to advise.