Brazilian oil-field services company Lupatech just qualified to raise up to R$400 million through the Brazilian National Development Bank (BNDES). Lupatech has struggled with losses and a heavy debt load after the company expanded its operations on expectations for heated demand for services from Brazil’s growing offshore oil and natural gas industries.

According to the company, the BNDES money will be used to reduce the company’s short-term (R$ 20 million) cash pressure and to restructure Lupatech’s short-term debt of R$338 million, lengthening the repayment schedule. Market analysts expect a maximum cost of debt of 11% per year, slightly below the company’s current short-term debt cost.

“This operation is another important step in the strengthening of the financial and capital structure at Lupatech,” the company said in a filing with stock regulators.

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