Brazil's CPFL debentureholders approve amendment to financial ratios

By Toni Weeks

San Diego, Dec. 19 - CPFL Energia SA said that holders of its third public issue of simple, unsecured debentures unanimously approved a proposal to amend the deed for the notes at a Dec. 17 meeting in Sao Paulo.

Debentureholders representing 91.21% of the outstanding debentures attended the meeting. Also represented was fiduciary agent SLW Corretora de Valores e Cambio Ltda.

According to a company press release, the proposals allow SLW to declare early maturity of and require immediate payment by CPFL for the debentures if

• The ratio of net debt to EBITDA is less than or equal to 3.75 times; and

• The ratio of EBITDA to CPFL's financial results is greater than or equal to 2.25 times.

The debentureholders' approval of the amendments was contingent on the company paying a bonus of 0.2% of the outstanding balance of the debentures as of Dec. 17, with payment to be made within five business days of the meeting.

CPFL is a Sao Paulo-based energy producer and distributor.

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