By Brazil Stock Guide – Casas Bahia (B3: BHIA3) advanced its capital-structure overhaul on Tuesday, asking shareholders and bondholders to approve two major steps aimed at reducing leverage and unlocking room for future transactions. The board cleared proposals to expand the company’s authorized capital by up to R$13.25 billion and to reprofile debt tied to its 10th debenture issuance, both to be voted on December 17.
Shareholders to Vote on Expanded Headroom
The retailer will convene an extraordinary shareholders meeting to approve a substantial increase in authorized capital. If passed, the board would gain flexibility to raise equity without altering the bylaws — a mechanism often used to accelerate negotiations with strategic or financial investors.
The move is part of the company’s ongoing Capital Structure Transformation Plan, first outlined in a series of filings between June and August.
Debt Holders to Assess Reprofiling Proposal
On the same day, Casas Bahia will also gather bondholders of its 10th debenture issuance — a three-series structure that includes a convertible tranche — to vote on a reprofiling of terms. Adjusting the maturity and conditions of the issuance is seen as a crucial step for easing short-term pressure on cash flow and improving the company’s credit trajectory as it seeks fresh capital.
Negotiations Continue; No Binding Agreements Yet
The proposals reflect ongoing discussions with potential investors and debenture holders, though the company stressed that no binding agreements have been reached. Any final measures will depend on regulatory approvals, stakeholder alignment and conditions beyond the company’s control.
Casas Bahia said it will continue to update the market on relevant developments as deliberations progress.
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