JBS USA raises term loan price talk to Libor plus 750 bps

By Sara Rosenberg

New York, Oct. 6 - JBS USA increased price talk on its $500 million six-year term loan to Libor plus 750 basis points from Libor plus 550 bps and widened the original issue discount guidance to 96 from 97, according to a market source.

The term loan still has a 3.25% Libor floor.

The company's $750 million five-year ABL revolver is still being talked at Libor plus 275 bps with a 37.5 bps commitment fee, the source said.

Credit Suisse and GE Capital are the lead banks on the $1.25 billion deal, with Credit Suisse the left lead on the term loan and GE the left lead on the revolver.

Proceeds will be used to help fund parent JBS SA's acquisitions of Smithfield Beef Group Inc. for $565 million in cash and National Beef Packing Co. LLC for $465 million in cash and $95 million in common stock.

JBS USA is a meat processing and packaging company.

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