CSN Debt Surges, Shares Plunge as Steelmaker Seeks Asset Sales
Steel rebars on a truck outside the CSN steel plant in Volta Redonda, Rio de Janeiro state, Brazil.
Photographer: Dado Galdieri/BloombergCSN is under pressure from high financing and capital costs even as the Brazilian steel, energy and raw materials conglomerate works to sell assets to strengthen its balance sheet. The stock tumbled to the lowest in almost six years.
Net debt rose 11% to 41.2 billion reais ($8 billion) during the fourth quarter, expanding the company’s net leverage ratio to 3.47 times earnings before interest, taxes, depreciation and amortization. The increase was a “one-off event”, CSN Chief Executive Officer Benjamin Steinbruch told investors and analysts during a conference call on Thursday.