June 7, 2013

JBS to raise US$235 million for restructuring 2013 maturing debt

In order to restructure debt that is maturing in 2013, Brazil's JBS SA will raise some US$235 million through the issuance of debentures on July 15.

This was announced by the company in a filing with Brazil's Securities Commission (CVM).

The issuance will be conducted by releasing up to 500,000 debentures with a nominal value of US$470. JBS may emit an additional 20% of the original quantity offered, and a third allotment of 15% of the initial offering.

The operation will be conducted in up to three sets. Maturity of the debentures will be five years for the first and second series, and seven years for the third. The issuance is being coordinated by the Brazilian banks Bradesco BBI, Banco do Brasil, BTG Pactual and HSBC.

The company said following its first quarter financial report in May it would work to reduce its ratio between net debt and earnings to below three times by the end of this year, with an improvement coming in the second quarter and two and a half times a distinct possibility.