S&P gives Marfrig notes B+

S&P said it assigned its B+ issue-level rating to MARB BondCo plc's proposed senior unsecured notes due 2025.

The agency also assigned a recovery rating of 4 to the proposed notes, which indicates an average recovery expectation of 30%-50% (rounded to 30%).

The notes will be fully and unconditionally guaranteed by Marfrig Global Foods SA.

Marfrig will use the net cash proceeds for liability management, funding the tender offer for its outstanding notes due in 2018 and 2019, and therefore extending its overall debt maturity profile, S&P said.

“Given that the company will use the cash proceeds for refinancing purposes, we don't expect the new notes to significantly impact the company's net leverage and capital structure,” the agency said in a news release.

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