Indebtedness and ratings
Indebtedness (as of 03/31/09)
The company's total debt, including 50% of Veracel, amounted to $4,102.8 million at the end of March 2009, $44.4 million lower than at the end of December 2008 and $2,371.5 million higher than at the end of March 2008.
| (US$ million) | March 31, 2009 | December 31, 2008 | March 31, 2008 |
| Short-term debt | 383.5 | 346.3 | 104.1 |
| Current portion of long-term debt | 255.9 | 192.6 | 82.7 |
| Short term debt instruments | 99.3 | 115.6 | 5.7 |
| Accrued financial charges | 28.3 | 38.1 | 15.7 |
| Long-term debt | 3,499.7 | 3,566.7 | 1,304.4 |
| Total debt | 3,883.2 | 3,913.0 | 1,408.5 |
| Cash, cash equivalents and investments | (389.1) | (431.6) | (527.7) |
| NET DEBT OF ARACRUZ | 3,494.1 | 3,481.4 | 880.8 |
| 50% of Veracel's principal repayment | 218.7 | 233.0 | 321.6 |
| 50% of Veracel's accrued financial charges | 0.9 | 1.2 | 1.2 |
| 50% of Veracel's cash, cash equivalents and investments | (0.4) | (0.3) | (0.3) |
| 50% OF VERACEL'S NET DEBT | 219.2 | 233.9 | 322.5 |
| NET DEBT INCLUDING 50% OF VERACEL | 3,713.3 | 3,715.3 | 1,203.3 |
| TOTAL DEBT INCLUDING 50% OF VERACEL | 4,102.8 | 4,147.2 | 1,731.3 |
The consolidated debt maturity profile, as at March 31, 2009, was as follows:
The average debt maturity profile, including Veracel's figures, was at 53 months at the end of March.
| Debt structure (including 50% of Veracel's figures) | Principal (US$ million) | % of total | Average interest rate |
| Floating rate (spread over Libor - % p.a.) | 2,747 | 67% | |
| Trade Finance | 1,389 | 34% | Libor + 1.73% |
| Derivative debt - foreign currency | 1,351 | 33% | Libor + 3.50% |
| EIB - European Investment Bank | 7 | - | Libor + 0.40% |
| Floating rate (% p.a.) | 503 | 13% | |
| BNDES - Local currency | 400 | 10% | TJLP(²) + 2.56% |
| BNDES - Foreign currency (currency basket) | 103 | 3% | (¹) + 2.75% |
| Fixed rate (% p.a.) | 824 | 20% | |
| Derivative debt - local currency | 679 | 17% | 12.68%(³) |
| Trade Finance | 100 | 2% | 7.31% |
| Export Credit Notes | 41 | 1% | (4) |
| Rural Credit | 4 | - | 6.75% |
| Total | 4,074 | 100% |
(¹) BNDES's interest rate for foreign currency contracts.
(²) Brazilian long-term interest rate.
(³) Until the signing of the final version of the Loan Agreement.
(4) Plain vanilla swap ? converts asset position of 100% of CDI rate into a liability in US$ + 5,99% p.a
Cash, cash equivalents and other investments, at the end of the quarter, totaled $389.1 million, of which $321.9 million (83%) was invested in Brazilian currency instruments and $67.2 million (17%) was invested in foreign currency.
Net debt (total debt less cash holdings) amounted to $3,494.1 million at the end of the quarter, $2,613.4 million higher than in the 1Q08, mainly due to the derivative related debt and $12.7 million higher than the net debt at the end of the 4Q08. .
Ratings
Please clink on the links below to access ARACRUZ latest rating reports:
Last update on May 20, 2009
