By Cristal Cody
Chicago, Sept. 13 – JBS USA Lux SA, JBS USA Finance Inc. and JBS USA Food Co. reopened for an additional $2 billion an offering of three tranches of notes from June, according to information from a market source.
The notes are guaranteed by JBS SA and JBS USA Holding Lux Sarl along with other entities of the companies.
The company added $400 million of the 5.125% notes due 2028, pricing with a 187.5 basis points spread to Treasuries on talk in the 210 bps to 215 bps area. The reopening price was 99.058.
For the middle tranche, JBS sold an additional $800 million of 5.75% notes due 2033 at a 262.5 bps spread to Treasuries. Initial talk on the reopening was in the 285 bps to 290 bps area. The reopening price was 98.139.
The company also sold another $800 million of the 6.5% notes due 2052 at a spread of 295 bps to Treasuries versus talk in the 320 bps area. The reopening price was 100.346.
The original $2.5 billion deal broke down into $500 million of the 2028 notes, $1.25 billion of the 2033 notes and $750 million of the 2052 notes.
The company started a $350 million cash tender offer on Monday.
Proceeds will be used to fund the redemption of the 6.75% senior notes due 2028, to pay for the tender offer for the 6.5% senior notes due 2029 and to prepay an outstanding term loan balance of $1.3 billion. The company may also use proceeds to repay other short-term debts and for general corporate purposes.
Bookrunners for the reopening are Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., RBC Capital Markets LLC and Truist Securities Inc.
JBS USA is a Greeley, Colo.-based food and beverage company. Parent JBS SA is based in Brazil.
| Issuers: | JBS USA Lux SA, JBS USA Finance Inc. and JBS USA Food Co.
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| Guarantors: | JBS SA and JBS USA Holding Lux Sarl
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| Amount: | $2 billion
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| Issue: | Senior notes
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| Bookrunners: | Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., RBC Capital Markets LLC and Truist Securities Inc.
|
| Trade date: | Sept. 12
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|
|
| 2028 notes
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| Amount: | $400 million
|
| Maturity: | Feb. 1, 2028
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| Coupon: | 5.125%
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| Price: | 99.058
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| Spread: | Treasuries plus 187.5 bps
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| Price talk: | Treasuries plus 210 bps to 215 bps area
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| Original issue: | $500 million issued on June 21
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|
|
| 2033 notes
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| Amount: | $800 million
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| Maturity: | April 1, 2033
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| Coupon: | 5.75%
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| Price: | 98.139
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| Spread: | Treasuries plus 262.5 bps
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| Price talk: | Treasuries plus 285 bps to 290 bps area
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| Original issue: | $1.25 billion issued on June 21
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|
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| 2052 notes
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| Amount: | $800 million
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| Maturity: | Dec. 1, 2052
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| Coupon: | 6.5%
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| Price: | 100.346
|
| Spread: | Treasuries plus 295 bps
|
| Price talk: | Treasuries plus 320 bps area
|
| Original issue: | $750 million issued on June 21
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