JBS Launches Record $3.5 Billion Bond Sale
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JBS NV launched a $3.5 billion bond sale, its biggest-ever offering, as the world’s largest meat producer seeks to extend maturities on its debt.
The Brazilian company is expected to price a three-part offering of debt due in 10, 30 and 40 years on June 23, according to a person with direct knowledge of the matter. JBS has also made an offer to repurchase all of its $1 billion in notes expiring in 2027 and disclosed plans to redeem at least a portion of its $900 million in bonds due 2028, according to a statement.
The sale comes as borrowers rush to tap debt markets, worried about impacts of escalating conflict in the Middle East. Mexico is selling bonds, Kuwait is mobilizing banks for a possible issuance and Kazakhstan is planning a sale. Companies — from French lender BNP Paribas SA to Korean telecom firm KT Corp. — also came out with bond offerings at the start of the week.
(Bloomberg)
The premium bondholders demand to hold JBS debt has plunged over the past few months. The company has generated abundant cash as it capitalizes on its ability to produce beef, chicken and pork across different countries, with its outstanding debt having fallen below two times earnings before some items. JBS has also just completed a much-awaited listing of its shares in New York, part of a plan to boost access to capital markets.
JBS ranks No. 68 on the Transport Topics Top 100 list of the largest private carriers in North America.
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