JBS takes in tenders, consents for 65.7% of 11 5/8% notes due 2014

By Toni Weeks

San Luis Obispo, Calif., Sept. 17 - JBS USA, LLC, a wholly owned subsidiary of JBS SA, said it took in tenders for $459,867,000, or 65.7%, of the 11 5/8% senior notes due 2014 issued by JBS USA and JBS USA Finance, Inc. by the consent payment deadline for its cash tender offer, 5 p.m. ET on Sept. 16.

According to a press release, all notes tendered by the consent payment deadline have been accepted for purchase. Settlement will occur Sept. 18 for these notes.

The total purchase price will be $1,067.79 for each $1,000 principal amount of notes tendered by the consent payment date. The total payment includes a $20.00 early tender premium per $1,000 of notes.

As part of the tender offer, the issuers solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default and related provisions. Consents were needed from holders representing a majority of the outstanding notes, which has been satisfied. According to the release, the issuers have executed a supplemental indenture to the indenture governing the notes to give effect to the amendments.

Holders who tendered notes had to consent to the proposed amendments and could not deliver consents without tendering their notes.

The tender offer will end at midnight ET on Sept. 30. The payment for notes tendered after the consent payment date but before the offer deadline will be $1,047.79 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

J.P. Morgan Securities LLC (800 245-8812 or collect 212 270-1200) is the dealer manager. D.F. King & Co., Inc. (800 758-5378, collect 212 269-5550 or email jbs@dfking.com) is the information agent and the tender agent.

JBS is a Greeley, Colo.-based beef, pork and lamb processing company.

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