S&P raises Guacolda Energia

S&P said it raised its ratings for Guacolda Energia SpA and its debt to CCC- from D following the completion of its tender offer for its notes due 2025 on Aug. 16.

Guacolda shaved $22 million from its total debt by paying about $15 million in cash. It also exchanged $168 million notes for new 10% notes with a maturity date in 2030. As a result, Guacolda improved its debt maturity schedule, with $83 million due in 2025 and the rest in 2030.

However, even with the improvements,“We updated our base-case forecast, incorporating the new capital structure, but we continue to forecast a $50 million cash shortfall in April 2025,” the agency said in a press release.

The outlook is negative.

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