By Brazil Stock Guide – Oncoclínicas (B3: ONCO3) has called meetings of debenture holders from its 9th, 11th and 12th issuances to approve a prior waiver that would prevent a potential technical default tied to its leverage ratio. The move comes as the Brazilian oncology network faces pressure from elevated debt levels and tighter covenant limits embedded in its bond documents.
The company’s most recent public figures show total gross debt of roughly R$ 4.9 billion and net debt of about R$ 4.4 billion. Its Net Debt-to-Adjusted EBITDA ratio stands near 4.2x — above the 3.5x ceiling stipulated in the indentures. If the ratio calculated in the audited 2025 financial statements remains above that level, it could trigger a formal event of default unless creditors grant the requested waiver.
Management says the request is preventive and part of a broader “back-to-core” strategy launched in 2025 aimed at deleveraging, streamlining capital-intensive operations and prioritizing stronger-paying revenue sources. The group also pursued a private capital increase of up to R$ 2 billion last year, but subscriptions were only partial and largely structured through debt capitalization, providing limited fresh liquidity.
For credit investors, the bondholder vote scheduled for March 24 will serve as a key test of confidence in Oncoclínicas’ ability to stabilize cash generation and gradually bring leverage down through 2026. Without the waiver, the company would face the risk of a technical default — even if no immediate payment failure occurs — potentially complicating refinancing efforts and increasing funding costs.
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