Brazil’s JBS cancels tender offers, consent bids for 10¼%, 10½% notes

By Angela McDaniels

Tacoma, Wash., June 5 – JBS SA terminated the tender offers and consent solicitations for its outstanding $350 million 10¼% senior notes due 2016 and the outstanding $300 million of 10½% senior notes due 2016 issued by JBS and JBS Finance Ltd., according to a company news release.

The tender offers were subject to a financing condition. The company said it terminated the tender offers because a new offering of senior notes by JBS USA, LLC and JBS USA Finance, Inc. has been postponed.

The tender offers began May 28 and were scheduled to expire at midnight ET on June 24.

The company had planned to pay $1,155 for each $1,000 principal amount of notes. This included an early tender payment of $30 for each note tendered by the early tender payment deadline, 5 p.m. ET on June 10.

Holders would have also received accrued interest up to but excluding the settlement date.

JBS was soliciting consents to proposed amendments that would have eliminated substantially all of the restrictive covenants and some events of default and related provisions contained in the indentures governing the notes.

Holders tendering notes had to also consent to the proposed amendments and vice versa.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) was the dealer manager, and D.F. King & Co., Inc. (800 758-5378, 212 269-5550 or jbs@dfking.com) was the information agent and tender agent.

JBS is a meat company based in Sao Paulo.

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