Oi’s board of directors approved the conditions for a capital increase of up to R$ 12.3 billion in which eligible bondholders will receive new shares of the company as part of a debt restructuring.
Oi will issue a minimum of 1,039,868,479 and a maximum of 1,756,054,163 new common shares at a price of R$ 7.00 each. The firm is also expected to issue up to 135 million subscription warrants which will be allocated to the subscribers of the shares that are the object of the capital increase. Each subscription warrant will entitle its holder to subscribe to one of the company’s common shares
The capital increase is subject to the preemptive rights of Oi’s current shareholders. Should the shareholders’ preemptive rights be exercised, in cash, the number of shares to be subscribed by the bondholders will be reduced.