SÃO PAULO, Brazil – JBS S.A. announced the company has re-opened senior unsecured notes at $275 million with a yield of 6.25 percent. JBS and JBS Hungary Holdings Kft will secure the notes.
The company said it will use the net proceeds from this offering to extend its debt maturity profile by refinancing a portion of its outstanding short-term debt and for general corporate purposes. The offering will improve the company's overall debt profile and reduce financial costs, the company said.
"The yield of 6.25 percent is even better than the previous offering and represents an all-time low for the company," JBS said. "The book building represented a three-times oversubscription.
"This offering has a BB rating from Standard & Poors and BB- with stable perspective from Fitch Ratings," JBS added.
Fitch Ratings affirmed JBS's ratings and upgraded its ratings outlook from negative to stable.
"The 'BB-' rating takes into consideration JBS's strong business profile, as the world's largest beef, leather and pork producer and one of the largest producers of chicken and lamb," the ratings agency reported. "Further factored into JBS' ratings are the company's geographic and product diversity, which partially mitigates the risks of trade barriers and animal diseases. JBS has high leverage and its risk profile is above average due to cyclical risks associated with the meat business and the company's aggressive attitude toward growth through acquisitions.
"The revision of the Ratings Outlook was prompted by improving business outlook for JBS in 2013, particularly at its chicken division in the US, Pilgrim's Pride," Fitch added.
Enhance your industry IQ Sign up for our free newsletters to stay informed on each day’s news and trends |
Subscribe |