Brazil’s Marfrig gives final results of tender for 6 7/8%, 7% notes

By Rebecca Melvin

New York, Feb. 10 – Marfrig Global Foods SA announced the final settlement of its offer to buy back up to $1.75 billion of its 6 7/8% senior notes due 2024 (ISINs: US566007AB67, USG5825AAB82) and its 7% senior notes due 2025 (ISINs: US566007AA84, USG5825AAA00) issued by MARB BondCo plc, according to a press release.

As of the expiration at 11:59 p.m. ET on Feb. 8, $714,634,000, or 71.6%, of the 2025 notes and $329,468,000, or 43.93%, of the 2024 notes had been tendered and not withdrawn.

The final settlement included $800,000 of 2025 notes, or about 0.08% and $5,375,000 of the 2024 notes, or about 0.72%, that were validly tendered after the early tender time and prior to expiration.

The buyback leaves $285,366,000 of the 2025 notes remaining outstanding and $420,532,000 of the 2024 notes remaining outstanding.

As previously reported, the 2024 notes were purchased at $1,007.50 per $1,000 face amount and the 2025 notes at $995 per $1,000 face amount, plus interest plus an additional $30.00 per $1,000 face amount if tendered prior to the Jan. 25 early deadline.

The company will redeem any 2025 notes remaining outstanding at 103.438% of their principal amount, which is less than the 2025 total consideration, and it will exercise its right under the 2024 notes indenture to redeem those notes at a price of 101.75% of the principal amount, less than the 2024 total consideration.

The information and tender agent is D.F. King & Co., Inc. (212 269-5550, 800 290-6424, marfrig@dfking.com).

The dealer managers are BNP Paribas Securities Corp. (888 210-4358, 212 841-3059, dl.us.liability.management@us.bnpparibas.com), Banco Bradesco BBI SA (646 432-6642, daniel.fuccillo@bradescobbi.com), HSBC Securities (USA) Inc. (888 472-2456, 212 525-5552, lmamericas@us.hsbc.com), J.P. Morgan Securities LLC (866 846-2874, 212 834-7279), Santander Investment Securities Inc. (855 404-3636, 212 940-1442, liabilitymanagement@santander.us), Jefferies LLC (888 708-5831, 203 708-5831, tlepore@jefferies.com), Banco BTG Pactual (fax: 212 293-4609, ol-dcm@btgpactual.com), Banco Safra SA (backofficecayman@safra.com.br), Itau BBA USA Securities, Inc. (888 770-4828, 212 710-6749, IBBA_Syndicate@correio.itau.com.br), Rabo Securities USA, Inc. (JanHendrik.Graaff@rabobank.com) and UBS Securities LLC (888 719-4210, 203 719-4210, dl-synd-stamford@ubs.com).

Marfrig Global Foods is a Sao Paulo, Brazil-based food processing company.

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