Brazil Retailer’s $6.6 Billion Rout Deepens on Stock Sale
- Casas Bahia sinks as stock offering priced at steep discount
- Transaction comes as investors grow wary of debt load
People walk past a Casas Bahia appliance store in the Rocinha favela in Rio de Janeiro, Brazil, on Thursday, Aug. 20, 2015.
Photographer: Nadia Sussman/Bloomberg
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Shares in Grupo Casas Bahia SA tumbled after the Brazilian retailer priced an equity offering at a steep discount, a blow to its latest effort to raise new money and slash debt.
Casas Bahia — formerly known as Via — sold new stock at 80 centavos apiece last night, a 28% discount to Wednesday’s closing price, raising about 623 million reais ($128 million). If subscription warrants included in the transaction are fully exercised, the amount rises to 1.1 billion reais, the company said in a regulatory filing.