Brazil’s Marfrig scraps plans to offer seven-year senior notes

By Toni Weeks

San Luis Obispo, Calif., Nov. 20 – Marfrig Overseas Ltd. announced it has decided not to pursue the offering of a new issue of seven-year senior notes.

According to a press release, the company began price discussions with investors on Friday for the offering, the proceeds of which would be exclusively used to finance a tender offer for its outstanding $775 million of 9½% senior notes due 2020.

On Wednesday, initial price talks were disseminated to the market, and a solid book was built. However, price levels indicated by investors did not meet Marfrig’s price target, whose last offering of senior notes priced below 7% and with a negative new issue premium of 78 basis points.

In light of its overall objective of reducing interest expenses, Marfrig said it has decided not to undertake the new note offering at this time.

The company also canceled the tender offer and consent solicitation for the 9½% notes, which began Friday and was set to expire on Dec. 12.

Marfrig said in the press release that it will continue with an “open and fluid dialogue with investors.”

The food processing company is based in Sao Paulo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.