By Paul A. Harris
Portland, Ore., Sept. 13 - JBS USA priced an upsized and restructured $500 million add-on to its 7¼% senior notes due June 1, 2021 (Ba3/BB/) at 99.5 to yield 7.33% on Friday, according to a market source.
The deal, initially marketed as a new issue of eight-year senior notes, was upsized from $400 million.
The reoffer price came in the middle of the 99 to par price talk.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The co-issuer is special-purpose vehicle JBS USA Finance, Inc.
The Greeley, Colo.-based beef, pork and lamb processing company plans to use the proceeds to help finance a tender for its 11 5/8% senior notes due 2014. The company is a subsidiary of JBS SA, a Brazilian multinational food processing company.
Additional proceeds from the upsizing of the bonds, as well as proceeds from a $100 million upsizing of the bank loan, will be used to repay revolver debt.
| Issuer: | JBS USA, LLC and JBS USA Finance, Inc.
|
| Face amount: | $500 million, increased from $400 million
|
| Proceeds: | $497.5 million
|
| Maturity: | June 1, 2021
|
| Security description: | Add-on to 7¼% senior notes due June 1, 2021
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, RBC Capital Markets, Wells Fargo Securities LLC
|
| Co-managers: | SG CIB, U.S. Bancorp Investments Inc.
|
| Coupon: | 7¼%
|
| Price: | 99.5
|
| Yield: | 7.33%
|
| Spread: | 477 bps
|
| First call: | June 15, 2015 at 105.438
|
| Equity clawback: | 35% at 107.25 until June 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 18 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 99 to par
|
| Marketing: | Roadshow
|
| Original issue: | $650 million priced at 98.26 to yield 7½% in May 2011
|
| Fungibility: | Add-on notes will be fungible with the existing notes after one year when freely tradable
|
| Total issue size: | $1.15 billion
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