JBS USA tightens discount on $1.9 billion term loan B to 99.75

By Sara Rosenberg

New York, April 24 – JBS USA Lux SA changed the original issue discount on its $1.9 billion seven-year term loan B (Ba2) to 99.75 from 99.5, according to a market source.

Also, the MFN sunset was revised to 24 months from 12 months, the source said.

Pricing on the term loan B remained at Libor plus 250 basis points with a 0% Libor floor.

The term loan B still has 101 soft call protection for six months.

Commitments were scheduled to be due at 5 p.m. ET on Wednesday, accelerated from an original deadline of 5 p.m. ET on Thursday, the source added.

Barclays is the bookrunner on the deal and a joint lead arranger with BMO Capital Markets, RBC Capital Markets, Rabobank, SunTrust Robinson Humphrey Inc. and U.S. Bank.

Proceeds will be used to help refinance an existing term loan B due 2022.

Other funds for the term loan B refinancing will come from $150 million of add-on 5 7/8% senior notes due 2024, $150 million of add-on 5¾% senior notes due 2025, $400 million of add-on 6½% senior notes due 2029 and cash from the balance sheet.

JBS is a Greeley, Colo.-based animal protein products processing company.

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