Agribusiness  June 8, 2022

JBS offers cash tender for notes, new series of other offerings

GREELEY — Meat conglomerate JBS USA Holdings Inc. is adding new notes worth billions of dollars and has offered cash tender in increased amounts for existing notes.

In three releases from June 6, JBS USA announced cash tender offers of up to $900 million for 6.75% notes due in 2028 and up to $600 million of $1.4 billion for  6.5% notes due in 2029. The $600 million available for 6.5% notes was increased from $300 million announced in an initial release. The deadline to validly tendered notes is June 17.

Three series of senior unsecured notes amount to an aggregate principal of $2.5 billion. Proceeds from the sale of these notes will go toward some notes issued for 2028 and 2029, with remaining funds going toward general corporate expenses including debts.

The three series of notes issued include $500 million of 5.125% senior notes due in 2028, $750 million of 6.5% senior notes due in 2052 and $1.25 billion of 5.75% senior notes due in 2033. The sale of these notes is expected to close June 21.

Barclays Capital Inc., BMO Capital Markets Corp., Mizuho Securities USA LLC, RBC Capital Markets LLC and Truist Securities Inc. will serve as dealer managers for the tender offers. The offer to purchase has not been filed with the Securities and Exchange Commission.