Brazil's Independencia cancels tender offer for two series of 9 7/8% notes

By Susanna Moon

Chicago, Feb. 23 - Independencia SA said its wholly owned finance subsidiary Independencia International Ltd. terminated the tender offer and consent solicitation for its 9 7/8% notes due 2015 and 9 7/8% notes due 2017.

"In light of the fluid and rapidly changing global economic environment and the impact the economic crisis has recently begun to have on Independencia's business, the issuer does not believe it is prudent to proceed with the consent solicitation and tender offer," according to a company press release.

The consent solicitation and tender offer expired at 11:59 p.m. ET on Feb. 18.

As of the consent deadline of 5 p.m. ET on Feb. 3, $79.1 million and $53.5 million of the 2015 notes and the 2017 notes, respectively, were tendered for purchase in the tender offer, while consents relating to $168.6 million and $104.8 million of the 2015 notes and the 2017 notes, respectively, were delivered in the consent solicitation without the related notes being tendered.

As a result, the company said it received consents representing $247.7 million of the 2015 notes and $158.3 million of the 2017 notes.

In the tender, the company previously offered to purchase up to $144.38 million of the notes, including a cap of $61.88 million of the $224 million of 9 7/8% notes due 2017 as well as a maximum of $82.5 million of the $300 million of 9 7/8% notes due 2015.

For each $1,000 principal amount, the company previously said it would pay $660 for each series of notes, including a $30 consent payment for those who tendered by the early deadline.

The Bank of New York Mellon was the depositary. D.F. King & Co. Inc. (800 488-8035 or call collect 212 269-5550) was the information agent. Contact dealer managers Santander Investment (212 407-0995) and Citi (800 558-3745 or call collect 212 723-6108) with questions.

Independencia is a Jordanesia, Brazil-based and Cayman Islands-incorporated beef producer.

© 2015 Prospect News.
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