New Issue: Brazil’s Minerva sells $1 billion of global notes in two passes

Chicago, Oct. 3 – Minerva Luxembourg SA sold $1 billion of notes (BB/BB) in two different deals, initially for $900 million and then a $100 million fungible add-on offering, according to multiple documents.

The 8 7/8% senior notes mature in 2023.

They are guaranteed by parent Minerva SA.

The first offering priced at par and the add-on priced at 100.5.

The notes are callable initially with a Treasuries plus 50 basis points make-whole premium. Starting Sept. 13, 2028 they are callable at 104.438, with annual stepdowns to 102.958 then 101.479 and finally par.

On the initial offering, J.P. Morgan (lead), BB Securities Ltd., BofA Securities, Inc., Banco Bradesco BBI SA, HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Rabo Securities USA, Inc. and XP Investimentos Corretora de Cambio and Titulos e Valores Mobiliarios SA were the bookrunners.

The add-on was sold by J.P. Morgan and Itau BBA.

Proceeds were used to fund a portion of the purchase price to acquire Marfrig Global Foods SA in Brazil, Argentina, Chile and Uruguay.

Minerva SA is a Barretos, Brazil-based food processor.

Issuer:	Minerva Luxembourg SA
Guarantor:	Minerva SA
Amount:	$1 billion
Issue:	Senior notes
Maturity:	Sept. 13, 2033
Trustee:	Bank of New York Mellon
Counsel to issuer:	White & Case LLP, Stocche, Forbes Advogados, NautaDutilh Avocats
Luxembourg Sarl
Counsel to underwriters:	Davis Polk & Wardwell LLP, Pinheiro Neto Advogados
Call features:	Make-whole call until Sept. 13, 2028 at Treasuries plus 50 bps; starting Sept. 13, 2028 at 104.438; starting Sept. 13, 2029 at 102.958; starting Sept. 13, 2030 at 101.479; starting Sept. 13, 2031 at par
Equity clawback:	Up to 35% at 108.875
Change of control:	At 101
Ratings:	S&P: BB
	Fitch: BB
Distribution:	Rule 144A and Regulation S
ISIN:	US603374AH26, USL6401PAM51
Original
Amount:	$900 million
Bookrunners:	J.P. Morgan (lead), BB Securities Ltd., BofA Securities, Inc., Banco Bradesco BBI SA, HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Rabo Securities USA, Inc. and XP Investimentos Corretora de Cambio, Titulos e Valores Mobiliarios SA
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Settlement date:	Sept. 13, 2023
Add-on
Amount:	$100 million
Bookrunners:	J.P. Morgan and Itau BBA
Coupon:	8 7/8%
Price:	100.5
Settlement date:	Sept. 21, 2023

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