JBS Assembles Heaping US Facility

Brazilian beef producer JBS is heard seeking a new $1.4bn in the US loan market to pay down a bridge it took out in early 2007 to acquire Swift Foods. Credit Suisse and GE Capital are leading the new facility, rumored in the Libor plus 550bp area, say bankers away from the deal. GE Capital is leading a $750m revolver while Credit Suisse is handling a $650m term loan. The deal is being offered to participants at a discount to offer spread of 97, meaning they can collect a 300bp up-front fee upon entry into the facility. In last year’s acquisition of Swift by JBS, JPMorgan advised HM Capital, the owners of the US company, while Rothschild advised JBS. JBS officials declined to comment on the new facility.