CVC refinances BRL 370 million debt to boost tech spending

CVC Brasil has restructured BRL 370 million of debt that was due in October 2026 and April 2027. Creditors holding 85% of the debentures agreed on Monday, September 28, to exchange them for a new seventh issuance with lower interest and longer maturities. CFO Felipe Gomes told Bloomberg Línea that seven of its eight main creditors accepted the deal, including Citi, BTG Pactual, Leto Capital, and Absolute.

Under the agreement, the annual interest rate dropped from CDI plus 4.5% to CDI plus 3.9%. According to Gomes, this 0.6 percentage point reduction will save more than BRL 4 million in interest. The debt maturities move from October 2026 and April 2027 to September 2027 and September 2029. The previous debentures originated from a 2023 debt reprofiling, when XP was also among the main creditors.

The travel company posted an adjusted net loss of BRL 114.4 million in the first half of the year and gross debt of BRL 400.5 million in June. Gomes stated that the released cash will fund operations, reduce accounts receivable discounting, and support technology. Over 100 job cuts were confirmed in May, leaving the group with 1,627 stores across Brazil and Argentina at the end of June. Leverage is expected to close 2026 below 0.5 times adjusted Ebitda, the same level as the second quarter and down from 0.9 times a year earlier. CEO Fabio Mader added that the company continues seeking efficiency gains.

The business faces intensifying competition from rival Decolar, part of South Africa's Prosus group, which invests about $100 million annually in technology. Gomes denied any takeover talks with Decolar or other players. On the market side, BTG Pactual reiterated a neutral rating on August 12 with a 12-month price target of BRL 3.00, citing cautious optimism over margins. In July, Itaú BBA ceased coverage with a prior outperform rating and a BRL 3.00 target. On September 15, Fitch Ratings cut its outlook to stable from positive, citing weak free cash flow generation. By Friday, September 25, CVC shares traded at BRL 1.45, down 34.09% in 2026 and down 26.40% over 12 months, while the Ibovespa rose 14.29% year to date.