Viveo Capital Increase: R$ 870 Million Plan to Cut Leverage

Brazilian healthcare distributor Viveo (VVEO3) has approved a capital increase of up to R$ 869.76 million through the issuance of up to 966.4 million new common shares. The company is offering the new shares at R$ 0.90 each, representing a 26.83% discount to its closing price on June 25, 2026, and a 29.79% discount relative to its 30-day volume-weighted average price. The initiative is designed to pay down debt and optimize the company's capital structure.

The transaction is anchored by DNA Capital, the investment vehicle of the controlling Bueno family, which has committed to a minimum subscription of R$ 427 million. DNA Capital will fulfill this minimum commitment entirely by converting outstanding Viveo debentures into equity.

This transaction structure allows participating debenture holders to exchange their debt holdings for equity. While Viveo’s debentures have recently traded at a 55% to 60% discount in the secondary market, the company is permitting creditors to convert these bonds into new shares at their full face value.

The capital increase serves as a major deleveraging catalyst for the company. Viveo ended the first quarter of 2026 with a net debt of R$ 2.9 billion and a leverage ratio of 3.88x EBITDA. The minimum conversion anchored by DNA Capital will lower leverage to approximately 3.3x EBITDA, while a full subscription of the R$ 870 million capital increase via debt conversion could reduce the leverage ratio down to 2.7x EBITDA.