By Paul A. Harris
Portland, Ore., July 23 – JBS USA Lux SA launched and priced an upsized $1.25 billion issue of 10.5-year senior notes (Ba3/BB-) at par to yield 5½% in a quick-to-market Tuesday sale, according to market sources.
The issue size was increased from $1 billion.
The yield printed at the tight end of the 5½% to 5 5/8% yield talk, which was tight to initial guidance in the mid-to-high 5% area.
Barclays was the lead left bookrunner. Joint bookrunners were BMO Capital Markets Corp. and RBC Capital Markets LLC.
The co-issuers are JBS USA Food Co. and JBS USA Finance, Inc.
The Greeley, Colo-based food and beverage company plans to use the proceeds, including the additional proceeds resulting from the $250 million upsizing of the deal, to refinance JBS SA debt and for general corporate purposes.
| Issuers: | JBS USA Lux SA, JBS USA Food Co. and JBS USA Finance, Inc.
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Maturity: | Jan. 15, 2023
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays
|
| Joint bookrunners: | BMO Capital Markets Corp. and RBC Capital Markets LLC
|
| Co-managers: | Rabo Securities, Regions Securities Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 343 bps
|
| First call: | Jan. 30, 2025 at 102.75
|
| Equity clawback: | 40% at 105.5 until July 15, 2022
|
| Trade date: | July 23
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5 5/8%
|
| Marketing: | Quick to market
|
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