Paraguay’s Frigorifico gains consents from holders of 7.7% notes

By Mary-Katherine Stinson

Lexington, Ky., Feb. 12 – Frigorifico Concepcion SA gained the needed consents from holders of its $300 million of 7.7% senior secured notes due 2028 (Cusips: 358648AA1 and P4R54KAA4) to amend some provisions of the note indenture, according to a news release.

The company reported that holders representing 88.74% of the principal amount had consented to the proposed amendments.

The proposed amendments required valid consents from holders representing at least a majority of the total principal amount of the outstanding notes. There were additional amendments not requiring consent pertaining to the 2028 notes.

The proposed amendments and the additional amendments not requiring consent will become effective when the first supplemental indenture is executed plus the execution of the amendment to the Bolivian law to increase the shares of the Bolivian guarantor included in the collateral to 100% from 51% of the outstanding shares, the Brazilian fiduciary assignment agreement of quotas under condition precedent and the agreement over surplus of foreclosure and any other amendments as may be necessary to consummate the transaction. The effectiveness of the Brazilian fiduciary assignment agreement of quotas under condition precedent is also subject to the satisfaction of the Brazilian condition precedent.

The primary purpose of the consent solicitation was to amend the indenture to permit the company to incur additional debt. Specifically, the company was also conducting a concurrent offering of up to $300 million of additional 2028 notes to be consolidated and form a single series with the existing notes. The concurrent offering was conditioned on consummation of the consent solicitation.

The record date was 5 p.m. ET on Feb. 1.

The company will pay a consent fee of $10 per $1,000 principal amount of notes for which consents were delivered. The proposed amendments will become operative upon payment of the consent fee.

The consent solicitation expired at 5 p.m. ET on Feb. 9.

BofA Securities, Inc. (646 855-8988 or 888 292-0070) and J.P. Morgan Securities LLC are the solicitation agents.

Global Bondholder Services Corp. (855-654-2014, 212 430-3774 or contact@gbsc-usa.com) is the information and tabulation agent.

The notes were issued on July 21, 2021.

The meat processing company is based in Concepcion, Paraguay.

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