December 14, 2009

Brazil's Marfrig signs financing deal with private bank

Marfrig Alimentos S.A., a Brazilian meat processor, has signed a US$300 million financing deal with private bank Bradesco, the company said Friday (Dec 11).

Under the agreement, Marfrig will take out a seven-year loan, with a two-year grace period.

The loan will help improve its debt profile, the company said.

Marfrig recently sold 79.04 million shares for BRL1.5 billion (US$866 million) on the Sao Paulo Stock Exchange. Foreign investors acquired 37.8 million shares.

The company will use the proceeds to finance the recent acquisition of Seara Alimentos Ltd., a local poultry and pork processor. Marfrig bought Seara from US food giant Cargill for about US$900 million in September. The proceeds will also be used to repay its debt.

Marfrig, based in São Paulo, is a major meat processing company in Brazil. It has operations in Argentina, Uruguay, Chile, England, Northern Ireland, France and the Netherlands.