Brazil Meatpacker Hopes for Lucky 13

Brazilian meatpacker JBS has set 13% area guidance on a $400m issue of 2014 bonds for its JBS USA and JBS USA Finance units, according to bankers managing the sale. Books are expected to close late today with pricing likely tomorrow morning. The transaction, now roadshowing, is heard being marketed to the US high-yield investor base, in addition to EM buyers. Parent JBS SA’s outstanding bonds have tightened from north of 18% yield to 15%-16%, according to a trader, though the issuer is attempting to draw comparisons with US issuers such as Tyson Foods, whose recent 2014 bond trades at 9%-10%. The new JBS bonds are guaranteed by both the US units and parent. JPMorgan and Bank of America are managing the sale.