JBS USA issues $3.5 billion in debt
JBS USA, part of the Brazilian group JBS, priced on Monday a US$3.5 billion debt issue with maturities in 10, 30 and 40 years, the largest and longest issue in the company's history, according to a statement from the food processor released to the market.
The 10- and 30-year tranches are worth $1.25 billion each, with a yield of 5.572% and a coupon of 5.5% for the notes maturing in 2036 and a yield of 6.265% and a coupon of 6.25% for those maturing in 2056, according to JBS. The 40-year tranche is worth $1 billion, with a yield of 6.415% and a coupon of 6.375%.
JBS said the proceeds will be used to pay off all outstanding 2.5% senior notes due 2027, redeem all outstanding 5.125% senior notes due 2028 and pay off "certain short-term debt, including notes issued under the commercial paper program."
"Any remaining amount will be used for general corporate purposes, including the repayment of existing debt," it added.
The offering of notes in each series is scheduled to conclude on July 3.
The coordinators of the operation are BB Securities, BBVA, BMO, Bradesco, BTG, Citi, Mizuho and RBC, according to IFR, a service of LSEG.
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