Brazil’s Vitru plans up to R$500 million of non-convertible debentures

Chicago, Oct. 27 – Vitru Ltd.’s board or directors approved the issuance of up to R$500 million simple, unsecured, non-convertible debentures in two series, according to a 6-K filing with the Securities and Exchange Commission.

The first series will have a five-year tenor and interest that will be based on the Brazilian daily interbank deposit rate and 245 basis points.

The second seven-year series will have a floating rate 265 bps above the Brazilian daily interbank deposit rate.

There is the possibility for an additional R$100 million of debentures.

The debentures will be issued by wholly owned subsidiary Vitru Brasil Empreendimentos, Participacoes e Comericio SA.

The offering will be directed at professional investors in Brazil.

Proceeds will be used to prepay the last installment of the sellers’ financing in relating to the acquisition of Cesumar, with any remaining proceeds used to strengthen the company’s cash position.

Vitru is a Brazil-based pure distance learning education group in the postsecondary distance learning market.

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