JBS sets price talk for $1 billion two-part offering of senior notes

By Paul A. Harris

Portland, Ore., May 19 - JBS USA, LLC and JBS USA Finance, Inc. set price talk for their $1 billion two-part offering of senior notes (B1/BB/BB-) on Thursday, according to an informed source.

A tranche of eight-year notes, which comes with three years of call protection, is talked to yield 6 7/8% to 7%.

Meanwhile a tranche of 10-year notes, which comes with four years of call protection, is talked to yield 25 basis points behind the eight-year notes.

The initial call premiums for both tranches will be set at par plus 75% of the coupons.

The Rule 144A for life deal is set to price shortly after the books close at noon ET on Friday.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Banco do Brasil, Barclays Capital Inc. and Morgan Stanley & Co. Inc. are the joint bookrunners.

BMO Nesbitt Burns, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the co-managers.

Both tranches feature 101% poison puts.

JBS USA, LLC intends to use the proceeds to make an intercompany loan to JBS USA Holdings, Inc., which will further transfer the funds to Sao Paulo-based JBS SA, which expects to use proceeds to repay short- and medium-term debt.

JBS USA is a Greeley, Colo.-based beef and pork processor.

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