SAO PAULO, BRAZIL — JBS USA LLC and JBS USA Finance Inc. announced the pricing of their Senior Notes Offering, with the offering scheduled to close April 27. The initial intention was to raise US$400 million, but due to strong demand, a decision was made to increase the aggregate principal amount to US$700 million, with a coupon of 11.625%, due in 2014.
JBS said it intends to use the proceeds to balance debt with revenue geographically and improve its short-term liquidity, as well as increasing its cash position.
"Given the fact that JBS is operating in the U.S. for under two years and in the present financial environment, we feel that the strong demand for these Notes is a measure of how far we have progressed," said Joesley Batista JBS S.A. chief executive officer. "This is our first issuance by our U.S. subsidiary, and we are pleased to see the confidence that the financial community has demonstrated in our work. We plan to continue to operate efficiently in our global production platform, and the funds raised will help us reach that goal."
The notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state laws.