Debt

Consolidated gross debt totaled R$ 1,239.5 million on December 31, 2013, down 66.5% from 2012, when it came to R$ 3,694.5 million. This decrease was due to the settlement of the 6th issuance of promissory notes, totaling R$ 400 million, and the swap settlement, totaling R$ 150.0 million. Also in 2013, an early redemption of debentures totaling R$ 700.0 million occurred, and another series was issued, in the amount of R$ 500.0 million, maturing in late 2008.

On 12.31.2013, 69.5% of the Company's debt had long-term maturity.

Net debt stood at R$ 639.5 million at the close of 2013, an 80.4% fall from the R$ 3,265.3 million recorded in 2012. The Company's debt ratio fell by 30.5 percentage points to 13.0% per year.

Loans and Financings - Consolidated
(R$ million)	2013	2012
Gross Debt	1,239.5	3,694.5
Short-Term	377.7	1,302.2
Long-Term	861.8	2,392.2
Cash and Cash Equivalents	600.0	429.2
Cash and Cash Equivalents	600.0	429.2
Net Debt	639.5	3,265.3

The main financial indicators (covenants) to which CTEEP is submitted are established by the 1st issuance of simple debentures and the BNDES financing contracts.

i. i. Debentures: the financial indicators determined by the indenture are: Net Debt/Adjusted EBITDA Debentures ≤ 3.5 and Adjusted EBITDA Debentures/Financial Result (Income or Loss) ≥ 3.0, calculated on a quarterly basis. The Company has been complying with all requirements and restrictive clauses (covenants) established by CTEEP's 1st Issuance of Simple Debentures.

ii. ii. BNDES financing contracts: On December 26, 2013, BNDES sent the Company a letter altering the maximum financial indicators to Net Debt/Adjusted EBITDA BNDES ≤ 6.0 and Net Debt/(Net Debt + Shareholders' Equity) ≤ 0.6, calculated on a yearly basis. This alteration will be formally made later through an addendum to the contract should there be no early redemption of the debt related to the restrictive clauses (covenants).

Capital Structure