Stone Raises Funding for Its Credit Solution, Advancing in the Strategic Roadmap of Its Full Financial Platform While Limiting Credit Risk Exposure

Rhea-AI Summary

StoneCo Ltd. (Nasdaq: STNE) has successfully completed the issuance of R$580 million in FIDC quotas, raising R$493 million in capital for its credit solution aimed at small and medium-sized businesses (SMBs) in Brazil. The issuance includes R$348 million in senior quotas rated brAAA with a yield of CDI + 4% per year, and R$145 million in mezzanine quotas rated brBBB with a CDI + 7% yield. The decision to raise the offer size reflects strong demand, totaling nearly R$1 billion. This strategic move enhances Stone’s position as a comprehensive financial platform for SMBs while managing credit risk exposure.

Positive

• Raised R$493 million in capital to support credit solutions for SMBs.
• Strong demand for the FIDC issuance, totaling nearly R$1 billion.
• Senior quotas rated brAAA, indicating strong investor confidence.

Negative

• None.

SÃO PAULO, Brazil, Jan. 14, 2021 (GLOBE NEWSWIRE) -- StoneCo Ltd. (Nasdaq: STNE) (“Stone”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, today announces that it has completed the issuance of R$580 million in FIDC (“Fundo de Investimento em Direitos Creditórios”) quotas, raising R$493 million in third-party capital for its credit solution for SMBs in Brazil.

The new credit FIDC is structured with senior and mezzanine quotas held by institutional investors for a 36-month period, while Stone holds the subordinated quotas. The senior quotas reached R$348 million with a brAAA rating and yield of CDI (basic interest rate) + 4% per year. The mezzanine quotas reached R$145 million with a brBBB rating and yield of CDI + 7% per year. The subordinated quotas held by Stone totaled R$87 million.

Despite the first issuance of a new FIDC product usually having a higher cost than an operation in steady state, Stone decided to increase the offer size from the initial size of R$340 million to R$493 million. Total demand was nearly R$1 billion, which we believe creates a healthy path for future issuances at a lower cost.

This is an important milestone for Stone, which advances on its strategic roadmap to become a full financial platform for SMBs. This type of transaction will enable Stone to scale further its credit solution while limiting the credit risk exposure.

XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. acted as Lead Bookrunner in the offering, and XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Banco Bradesco BBI S.A., Banco Itaú BBA S.A. and Banco Votorantim S.A. collectively acted as Bookrunners in the offering.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Contact

Investor Relations
investors@stone.co

FAQ

What was the total amount raised by StoneCo in the FIDC issuance?

StoneCo raised R$493 million in third-party capital through its FIDC issuance.

What are the ratings and yields of the senior and mezzanine quotas issued by StoneCo?

The senior quotas are rated brAAA with a yield of CDI + 4%, while the mezzanine quotas are rated brBBB with a yield of CDI + 7%.

How much demand was there for StoneCo's recent FIDC offering?

The total demand for StoneCo's FIDC offering was nearly R$1 billion.

What is the significance of the new FIDC issuance for StoneCo?

The FIDC issuance is a strategic milestone for StoneCo, enhancing its credit solutions for SMBs and allowing scaling while managing credit risk.

Which institutions acted as Bookrunners in StoneCo's FIDC offering?

XP Investimentos, Banco Bradesco BBI, Banco Itaú BBA, and Banco Votorantim acted as Bookrunners for the FIDC offering.