The objective of the issuance is to obtain financing to be used to comply with its 2020 -2025 investment plan, as well as to improve the financial profile of the company.
“The warranty for the repayment of the titles are the credits that Cutcsa is entitled to receive from the STM Trust, or from any other centralized collection system that could replace or complement it in the future,” says a report from the risk agency Care, which qualifies to securities with the BBB.uy investment grade rating.
The titles issued will have a seven-year term, of which one corresponds to the grace period. The amortization, after the grace period, will be in 72 fixed installments (six years) of principal and interest. Although the interest rate will be defined at the time of issuance, the calculations were presented on the basis of 4.48% per year in UI.
The destination of the funds to be obtained through the issuance of securities, It is mainly aimed at gradually replacing the diesel bus fleet with electric buses. The plan includes the need to replace 25% of the fleet at the end of the period (2025), between 250 and 300 buses.
Additionally, it will have to adapt the parking lots in load centers, which will also imply heavy investments. The cancellation of current liabilities and reprofiling of the company’s debt structure are also expected.
The trust company is EF Asset Management Administradora de Fondos de Inversión SA
Cutcsa is a public limited company whose capital is represented by registered shares, and manages a system for operating the collective passenger transport service made up of 1,140 de facto companies, each one of them owners of a bus and service providers, says the Care report.
