Brazil's Vigor obtains consents to amend 9¼% step-up notes due 2017

By Devika Patel

Knoxville, Tenn., Sept. 24 - Fabrica de Produtos Alimenticios Vigor SA announced that, as of the expiration time of 5 p.m. ET on Sept. 24, the company had received consents from holders of about 87.6% of its $100 million of 9¼% step-up notes due 2017.

The company was soliciting consents to make the notes' indenture more flexible. Because it received the requisite consents from holders of two-thirds of the notes, Vigor will execute a supplemental indenture detailing all of the planned amendments. It expects to settle the consent fees within five business days.

The solicitation launched on Sept. 1.

Those who delivered consents prior to 5 p.m. ET on Sept. 13 will receive the early consent fee of $25 per $1,000 of notes. Those who tendered after that time and prior to the final deadline will receive $20 per $1,000 in notes.

The information agent for the solicitation was D.F. King & Co., Inc. (212 269-5550 or 800 967-4607; vigor@dfking.com). The solicitation agent was Santander (212 407-7854).

Vigor is a subsidiary of JBS SA and, according to a news release, JBS intends to merge Vigor into JBS, with JBS as the surviving entity.

If the merger occurs, JBS will assume all of Vigor's obligations under the note indenture and will also be restricted by its covenants.

The company previously said that the indenture of the step-up notes has covenants that are more restrictive than the covenants for JBS' existing debt, thus limiting the flexibility of JBS and its subsidiaries.

Sao Paulo, Brazil-based Vigor is a conglomerate in the dairy and vegetable oil products segments.

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